Mondelez and Master Blenders Complete Coffee Merger
03 Jul 2015 --- Mondelez International, Inc. and D.E Master Blenders 1753 B.V. announced today that they have completed the transactions to combine their respective coffee businesses, including Mondelez International's coffee portfolio in France, to create JACOBS DOUWE EGBERTS (JDE), which will be the world's leading pure-play coffee company with annual revenues of more than €5 billion.
Upon closing, Mondelez International received cash of approximately €3.8 billion and a 44 percent interest in the new joint venture, subject to standard post-close adjustments. Acorn Holdings B.V. (AHBV), owner of D.E Master Blenders 1753, will have a 56 percent share in JDE. AHBV is owned by an investor group led by JAB Holding Company in partnership with BDT Capital Partners, Quadrant Capital Advisors and Société Familiale d'Investissements.
The new company will be based in the Netherlands and hold market-leading positions in 18 countries globally as well as a strong emerging market presence. JDE will own some of the world's leading coffee brands, such as Jacobs, Tassimo, Moccona, Senseo, L'OR, Douwe Egberts, Kenco, Pilão and Gevalia.
The cash-and-equity consideration paid to Mondelez International was reduced proportionally from previous estimates to reflect Mondelez International retaining its interest in its Korea-based joint venture, Dongsuh Foods Corporation.
Following the transactions, Mondelez International becomes an even more focused snacking company, with approximately 85 percent of net revenues derived from biscuits, chocolate, gum and candy. By retaining a significant stake in JDE, however, Mondelez International will continue to benefit from future growth of the coffee category.
Mondelez is now reportedly in talks with multiple potential buyers to sell its Carte Noire French coffee brand, and thus placate European antitrust regulators following its deal with D.E. Master Blenders. The EC approved the Jacobs Douwe deal on the condition Mondelez unload Carte Noire, and DEMB sell its Merrild coffee unit. Italy's Lavazza struck a deal to buy Merrilld last month.
