Keurig To Repurchase Half Of Lavazzas Stake

WATERBURY, VT -- Keurig Green Mountain Inc. said it will buy back nearly half of Luigi Lavazza SpA's stake in the company for about $624 million. The purchase price of about $119.18 for each of the 5.2 million shares in Keurig is a 3% discount off Keurig's closing price on Feb. 20.

Keurig said it also amended its 2010 purchase agreement with Lavazza to eliminate the Italian coffee roaster's preemptive rights on future issuances of Keurig's common stock.

Lavazza had said it would drop its stake in Keurig as it looks to free up cash for future deals. The Italian coffee giant has bid $708 million for D.E. Master Blenders' L'Or and Mondelez International's Grand Mere French coffee brands, which have been put up for sale to ease a $5 billion merger of between the two companies' coffee businesses. The deal awaits approval from European regulators. | SEE STORY

In its most recent quarter, Keurig reported flat sales, hit by its Keurig Mini Plus brewer recall, and lowered its earnings outlook for the current year. | READ MORE