Keurig To Be Acquired By Investor Group For 139 Billion

WATERBURY, VT -- Keurig Green Mountain Inc. said it has agreed to be acquired by an investor group, led by JAB Holding Co., in a deal with an equity value of about $13.9 billion. As part of the agreement, JAB will pay $92 in cash for each Keurig share outstanding, which represents a premium of 77.9% over Keurig's closing stock price on Dec. 4.

The deal, unanimously approved by Keurig's board of directors, is expected to close in the first quarter of 2016. The Coca-Cola Co., Keurig's largest shareholder with a 17% stake, reportedly supports the deal. After the buyout, Keurig will be privately owned and independently operated.

The deal brings a windfall to investors who had seen the KGM stock lose more than half its value this year, Bloomberg Business noted. The company has been hurt by weakening K-Cup sales and lower prices for brewers. Additionally, KGM's new single-cup cold brewer has been poorly received, and the strong dollar is said to be impeding the company's international sales.

Minority investors in the JAB group include Mondelez International Inc. and affiliates of BDT Capital Partners.