Coffee rush fuels $10 billion takeover

Saturday, April 13, 2013 - 5:00am

Some people can never get enough coffee and nor, it seems, can German investment firm Joh A. Benckiser.

The investment arm of the Reimann family has swallowed its third coffee takeover in less than a year, agreeing to pay €7.5 billion ($9.8 billion) for Amsterdam-based D.E Master Blenders, well-known across Europe for its Douwe Egberts brand.

The all-cash deal values Master Blenders' shares at €12.50 each.

Just last year, JAB bought California-based Peet's Coffee & Tea and Minnesota-based Caribou Coffee in deals worth roughly $1 billion and $340 million, respectively.

JAB also owns companies such as Jimmy Choo and the apparel label Derek Lam.

D.E Master Blenders' was spun off from Sara Lee last year. It is the third largest coffee company in the world and competes with Kraft and Nestle.

This takeover has been given the stamp of approval by D.E Master Blenders' board, though the price is slightly below the €12.75 per share previously announced when the coffee company revealed in late March that it was in talks about a takeover.

The terms of the deal stipulate that D.E Master Blenders will continue to operate in the Netherlands. The bulk of its sales are in the Netherlands, France, Belgium, Germany and Brazil. 

News

Comments News Comments

Post new Comment