Its not often we get to write a headline that includes coffee and shoes so indulge us on this one please!
Interesting news coming out of the US overnight that The JAB Holding Company has bid to buy out Keurig for a cool 13.9 billion dollars (US) and turn it private.
In an excellent article in The New York Times it was reported that
‘The all-cash deal, offering an eye-popping premium of 78 percent, took analysts and investors by surprise. Keurig has lately had its share of challenges, facing a saturated market for its single-serving coffee brewers, sluggish sales of pods and a stalled new product.
But the JAB Holding Company — the investment arm of the Reimann family, heirs to the German consumer goods company, Joh. A. Benckiser GmbH — is in year three of its quest to dominate the global coffee industry. Keurig, which commands a large majority of the single-serve market in the United States, was a natural next step for the Reimanns.’
Also
‘JAB will lead an investor group to acquire Keurig for $92 a share in cash, according to a statement on Monday. The deal joins JAB’s collection of others, including a controlling stake in Jacobs Douwe Egberts, a coffee conglomerate that owns international brands like Bach Espresso and Bravo. It also has a controlling stake in Peet’s Coffee & Tea, which bought Stumptown Coffee Roasters this year, as well as Espresso House and Baresso Coffee A/S.’
To read the rest of the article, written by Leslie Picker and Stephanie Strom, please click here.
And the reference to the shoes? Well, apparently The JAB Holding Company has a controlling interest in both Jimmy Choo and Bally, along with Coty (OPI nail polish and Adidas Body Care).
