JAB to Buy Coffee Maker for $10 Billion
The investment firm, Joh. A. Benckiser GmbH, continues to expand in the $75.8 billion global coffee market by recently buying Douwe Egberts Master Blenders. The agreement now sets the value of the coffee and tea maker at 12.50 euros a share including dividends, which is approximately $16. Joh. A. Benckiser, also known as JAB, already owns a 15.05% stake in D.E. Master Blenders, which discouraged other bidders from the deal. D.E. Master Blenders is number three in the global coffee roasting sector, as they have about $4 billion in annual sales. The company is currently looking for future possibilities in other countries for acquisitions that would complement the company’s current portfolio. They recently bought U.S.-based Peet’s Coffee for around $1 billion then signed a $340 million deal for Minnesota-based Caribou Coffee.
Although D.E. Master Blenders owns the Douwe Egberts coffee brand, which is a spin off of the former consumer conglomerate, Sara Lee, the company seems to be expanding their markets. They have acquired many other coffee companies and they seem to know in what place they want to promote their products to increase theie sales and gain profit.
Written by: Samantha Chin
Source: The Wall Street Journal