Acquisition Strengthens Keurig's Technology Portfolio
WATERBURY, Vt.--(BUSINESS WIRE)--
Keurig Green Mountain, Inc. (Keurig) (NASDAQ: GMCR), a leader in
specialty coffee, coffee makers, teas, and other beverages with its
innovative brewing technology, announced today that it has entered into
an agreement to acquire the outstanding equity of MDS Global Holding
p.l.c. ("Bevyz") that it does not already own. The transaction is valued
at approximately €178 million euros, in cash, or approximately $220
million based on exchange rates as of the close of business on December
3, 2014. Keurig currently owns approximately 15% of Bevyz on a fully
diluted basis and will fund the acquisition with cash on hand. The
transaction is subject to customary closing conditions and is expected
to close in the next month.
Founded in 2004 by Edouard Sterngold and Eva Schwarz, Bevyz has
developed a unique, patented single-portion multi-drink system that
dispenses an extensive range of premium tasting hot and cold beverages.
"The acquisition of Bevyz adds unique and complementary technology and
research and development capabilities," said Brian Kelley, Keurig's
President and CEO. "As a result of our strong balance sheet, we're able
to make this strategic acquisition while investing in organic growth and
returning cash to shareholders."
As previously announced, Keurig will launch its Keurig Cold platform in
the fall of 2015. This innovative new beverage system will offer
consumers a convenient, sustainable way to enjoy freshly-made cold
beverages including carbonated drinks, enhanced waters, juice drinks,
sports drinks and teas at home with the one-touch simplicity, quality
and variety that North American consumers love about the Keurig® brand
hot system platform.
"We are extremely excited about this development as we believe Keurig's
innovative approach and business model are directly aligned with our
mission to deliver superior, in-home beverage experiences to consumers,"
added Edouard Sterngold, Bevyz's founder and CEO. "We're excited to
become part of the Keurig team and believe this acquisition is
financially compelling for our shareholders and creates new
opportunities for our employees."
Following the acquisition, Bevyz's roughly 50 employees will become part
of Keurig's technology and product systems teams and are expected to
continue to be located primarily in the Netherlands and Malta.
Keurig reiterated its fiscal year 2015 and first quarter 2015 guidance
provided in its November 19, 2014 earnings press release.
In connection with this transaction, BofA Merrill Lynch served as
financial advisor to Keurig and Perella Weinberg Partners served as
financial advisor to Bevyz and E. Landau Law Offices of Jerusalem,
Israel and The Giannuzzi Group of New York acted as legal counsel to
About Keurig Green Mountain, Inc.
As a leader in
specialty coffee, coffee makers, teas and other beverages, Keurig Green
Mountain (Keurig) (NASDAQ: GMCR), is recognized for its award-winning
beverages, innovative brewing technology, and socially responsible
business practices. The Company has inspired consumer passion for its
products by revolutionizing beverage preparation at home and in the
workplace. Keurig supports local and global communities by investing in
sustainably-grown coffee and by its active involvement in a variety of
social and environmental projects. By helping consumers drink for
themselves, we believe we can brew a better world. For more information
To purchase Keurig® products visit: www.Keurig.com or www.Keurig.ca.
Keurig routinely posts information that may be of importance to
investors in the Investor Relations section of its website, www.KeurigGreenMountain.com,
including news releases and its complete financial statements, as filed
with the SEC. The Company encourages investors to consult this section
of its website regularly for important information and news.
Additionally, by subscribing to the Company's automatic
email news release delivery, individuals can receive news directly
from Keurig as it is released.
Keurig Forward-Looking Statements
Certain information in
this press release constitutes "forward-looking statements."
Forward-looking statements can be identified by the fact that they do
not relate strictly to historical or current facts. They often include
words such as "believes," "expects," "anticipates," "estimates,"
"intends," "plans," "seeks" or words of similar meaning, or future or
conditional verbs, such as "will," "should," "could," "may," "aims,"
"intends," or "projects." However, the absence of these words or similar
expressions does not mean that a statement is not forward-looking. These
statements may relate to: the expected impact of raw material costs and
our pricing actions on our results of operations and gross margins,
expected trends in net sales and earnings performance and other
financial measures, the expected productivity and working capital
improvements, the success of introducing and producing new product
offerings, the impact of foreign exchange fluctuations, the adequacy of
internally generated funds and existing sources of liquidity, such as
the availability of bank financing, the expected results of operations
of businesses acquired by us, our ability to issue debt or additional
equity securities, our expectations regarding purchasing shares of our
common stock under the existing authorizations, projections of payment
of dividends, the impact of pending shareholder litigation, and the
impact of antitrust litigation pending against the Company in the United
States and Canada. A forward-looking statement is neither a prediction
nor a guarantee of future events or circumstances, and those future
events or circumstances may not occur. Management believes that these
forward-looking statements are reasonable as and when made. However,
caution should be taken not to place undue reliance on any such
forward-looking statements because such statements speak only as of the
date when made. We expressly disclaim any obligation to update or revise
any forward-looking statements, whether as a result of new information,
future events or otherwise. In addition, forward-looking statements are
subject to certain risks and uncertainties that could cause actual
results to differ materially from our Company's historical experience
and our present expectations or projections. These risks and
uncertainties include, but are not limited to, those described in Part
I, "Item 1A. Risk Factors" and Part II, "Item 7. Management's Discussion
and Analysis of Financial Condition and Results of Operations" in our
Form 10-K filed with the Securities and Exchange Commission for the
fiscal year ended September 27, 2014, and elsewhere in that report and
those described from time to time in our future reports filed with the
Securities and Exchange Commission.
Keurig Green Mountain
Suzanne Dulong, 781-418-8075
Kristi Bonner, 646-762-8095
Source: Keurig Green Mountain, Inc.
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