Keurig Green Mountain To Be Bought Out By JAB Holding In a $13.9 Billion Deal

By Tomi KilgoreMarketWatch Pulse

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 deal, JAB will pay $92 in cash for each Keurig share outstanding, which represents a 78% premium to Friday's closing price of $51.70. The deal is expected to close during the first quarter of 2016. The Coca-Cola Co. , which is Keurig's largest shareholder with a 17% stake, according to FactSet, is supportive of the deal. ""We have enjoyed a strong partnership with Keurig Green Mountain, and will continue our collaboration with JAB in order to capitalize on the growth opportunities in the single-serve, pod-based segment of the cold beverage industry," said Coke Chief Executive Muhtar Kent. The stock is set to resume trading, after a halt, at 8:30 a.m. Eastern. Through Friday, the stock had tumbled 61% year to date, while the S&P 500 had gained 1.6%.

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