EUROPE: Mondelez and Master Blenders complete coffee merger | Progresiv

Mondelez International and D.E Master Blenders 1753 have completed the transactions to merge their respective coffee businesses. This has resulted in the creation of Jacobs Douwe Egberts (JDE), a pure-play coffee company with annual revenues of more than 5 billion euros.

Upon closing, Mondelez received cash of approximately 3.8 billion euros and a 44 per cent interest in the new joint venture, subject to standard post-close adjustments.

Acorn Holdings, owner of Master Blenders, will have a 56 per cent share in JDE. AH 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.

Based in the Netherlands, the new company will hold market-leading positions in 18 countries globally as well as a strong emerging market presence. JDE will own some of the world's most popular coffee brands, such as Jacobs, Tassimo, Moccona, Senseo, L'OR, Douwe Egberts, Kenco, Pilão and Gevalia.

The cash-and-equity consideration paid to Mondelez was reduced to reflect Mondelez retaining its interest in its Korea-based joint venture, Dongsuh Foods Corporation.

By retaining a significant stake in JDE, Mondelez says it will continue to benefit from future growth of the coffee category. (www.esmmagazine.com)