WATERBURY, VT -- Green Mountain Coffee Roasters Inc. said it is selling its Filterfresh office coffee service business to Aramark Refreshment Services LLC for about $145 million.
Through the all-cash deal, Aramark will acquire all outstanding shares of Westwood, MA-based Van Houtte USA Holdings Inc., the OCS arm of Canadian roasting giant Van Houtte, also known as Filterfresh. It serves more than 71,000 locations in most major North American cities, and overlaps with Green Mountain's existing network of independent Keurig distributors in the U.S.
Aramark's Philadelphia-based refreshment services division currently boasts a client roster of some 100,000 locations nationwide, according to the company's website.
The purchase price is subject to adjustment based on Filterfresh's working capital and debt, and can change immediately before the transaction's closing. The companies did not disclose a closing date.
In December 2010, Green Mountain purchased LJVH Holdings, parent company of Montreal-based Van Houtte, for $890 million. Officials said the move would drive penetration of Green Mountain's Keurig single-cup brewer in Canada and allow the company to leverage Van Houtte's brands, along with its roasting, manufacturing and distribution capabilities, to strengthen its Canadian foothold. | SEE STORY
Soon after the acquisition, Green Mountain said it would divest Van Houtte's Filterfresh business and use proceeds from the sale to repay its debt.
Green Mountain operates two business units from its Waterbury, VT, headquarters. Its specialty coffee segment includes the Green Mountain Coffee, Tully's Coffee, Diedrich Coffee, Coffee People and Timothy's World Coffee brands Its Keurig business manufactures the namesake single-cup brewers that are widely distributed in both the office coffee service and home markets.