Monday, January 22, 2018 | Today's Vending Industry News
Lavazza Agrees To Buy $250M Of GMCR Stock, Explores Cooperation

by Staff Reporter
Posted On: 8/19/2010

  • Printer Friendly Version
  • Decrease Text SizeIncrease Text Size
  • PDF

Green Mountain Coffee Roasters, Luigi Lavazza, S.p.A. Lavazza coffee, Keurig, K-Cup, single-cup coffee brewers, office coffee service, OCS, vending, coffee business, coffee news

TORINO, Italy -- Green Mountain Coffee Roasters Inc. (Waterbury, VT) and Luigi Lavazza S.p.A have announced an agreement under which Lavazza will purchase $250 million (aggregate purchase price) of newly issued GMCR  10¢ par value common stock, approximately 7% of GMCR's current outstanding shares.

The pact specifies a price per share equal to the 60-day volume weighted average price at closing, minus 7.5%. The accord is expected to close in September, subject to regulatory approval.

GMCR reported that it intends to use the proceeds of the stock sale for general corporate purposes, including financing growth plans. GMCR's estimates for its fiscal fourth quarter 2010 and fiscal 2011, published on July 28, remain unchanged.

The two companies also announced that they are exploring a further agreement under which GMCR and Lavazza would cooperate to develop new espresso machines, which would be manufactured by Lavazza, as well as espresso capsules for them. The jointly developed machines would complement GMCR's line of Keurig single-cup coffee brewers. If the pact is consummated, the new products would appear during GMCR's 2013 fiscal year, at the earliest.

The additional agreement also may afford GMCR the ability to distribute, market and sell existing single-cup coffee machines incorporating Lavazza espresso technology for in-home use in the U.S. and Canada.