A new coffee giant could be elaborated.
The American drink firm Keurig Dr. Pepper plans to buy Jde Peet's, the European Matrix of California Gourmet Coffee Trailblazer, Peet's Coffee, in a cash transaction worth approximately $ 18 billion.
Keurig Dr. Pepper will be divided into two independent companies, one of which will focus on coffee, according to a launch on Monday.
The new coffee company will be called Global Coffee Co. and will be publicly negotiated in the US, as well as the beverage company, which will be called Bevenge Co. Global Coffee Co. will have approximately $ 16 billion in combined annual sales and CO drinks. It will have more than $ 11 billion in annual net sales, according to the statement.
“Today's announcement marks a moment of transformation in the beverage industry,” said Keurig Dr. Pepper Executive President Tim Cofer, in a statement. “Through the complementary combination of Keurig and Jde Peet, we are taking advantage of an exceptional opportunity to create a global coffee giant.”
According to the terms of the agreement, Keurig Dr. Pepper will pay the shareholders of JDE PEET 31.85 euros per cash, equivalent to approximately $ 37 per share. The value is a 33% premium for the average average price of shares weighted by volume of 90 days of Jde Peet.
After the agreement was announced, Jde Peet's shares rose more than 15%. Keurig Dr. Pepper's actions fell more than 10%.
According to the mid -year report by JDE PEET published in July, sales for the company grew more than 19% during the past year.
Together with Peet's Coffee, Jde Peet has popular brands, including the Stumpptown coffee toasters and the name of German Café Jacobs. Peet's Coffee has made a name like a destination based in San Francisco that helped to wear dark coffee and gourmet to US consumers.
After working in his father's small coffee company in the Netherlands, Alfred Peet moved to the United States and in 1966 he opened the first Peet cafeteria in the Bay area, near UC Berkeley.
“I came to the richest country in the world, so why do they drink the most lousy coffee?” Peet used to say, according to the Peet's Coffee website.
By 1971, Peet was training three young entrepreneurs and provided roast beans to open their new company, Starbucks. There are now more than 220 Peet coffee shops in California and more than 40 in other states.
After the acquisition is closed, Global Coffee Co. will have the most expansive coffee portfolio in the world, according to the statement, including revenue brands of more than $ 1 billion Keurig, Jacobs, L'Or and Peet's. The acquisition and division in two companies will relax the merger between Keurig and Dr. Pepper that closed in 2018.
“We are excited to join forces with Keurig to draw the future of global coffee taking advantage of our combined portfolio of the most beloved coffee brands,” said Jde Peet's executive director Rafa Oliveira, in a statement.
