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Issue Date: Vol. 49, No.12, December 2009, Posted On: 12/9/2009

Green Mountain To Acquire Diedrich For $290 Million

by Staff Reporter
Green Mountain Coffee Roasters, Green Mountain, Diedrich Coffee, Peet's, Keurig, K-Cup, Timothy's Coffee, office coffee service, OCS, vending, hot beverages, foodservice, vending machine, vending business, vending route, vending supplies, automatic retailing, coffee brewer, coffeemaker, coffee makers

WATERBURY, VT — Green Mountain Coffee Roasters Inc. said it has entered into a definitive agreement to acquire Diedrich Coffee Inc. for $35 per share in cash in a transaction with a total value of approximately $290 million.

The deal ends a bidding war between the Vermont roaster and Peet's to secure Diedrich's K-Cup business. Green Mountain had raised its all-cash offer by $25 million to $290 million on Dec. 2, and Emeryville, CA-based Peet's made a final cash-and-stock offer last week of $269 million, or $32.50 a share. Green Mountain will reportedly pay Peet's an $8.5 million termination fee on behalf of Diedrich.

Green Mountain chief Lawrence Blanford said the acquisition of Diedrich "further advances our objective of becoming a leader in the highly fragmented and competitive coffee and coffeemaker businesses."

Green Mountain owns the Keurig single-cup brewer and the Irvine, CA, roaster is one of four companies licensed to produce the proprietary portion packs for it. Green Mountain acquired Timothy's Coffees of the World, another K-cup licensee, last month for $157 million. In September 2008, Green Mountain purchased the Tully's brand and wholesale business, also licensed to produce K-Cups, for $40.3 million.

Green Mountain said it expects to consummate the transaction, which is subject to customary closing conditions including regulatory approvals, in early 2010.

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