Company acquires Keurig Green Mountain

Published 4:58 pm Wednesday, December 9, 2015

Single-cup coffee makers Keurig Green Mountain Inc., which has a plant in Windsor, has been purchased by JAB Holding Company. The buyer is paying $92 per share in cash, which comes out to $14 billion.

The announcement was made on Monday via press release from Keurig.

“At the close of the transaction, Keurig Green Mountain will be privately owned and will continue to be operated independently by the company’s management team and employees. Keurig Green Mountain will remain headquartered in Waterbury, Vermont,” stated the release.

Asked how the sale might affect the plant locally, vice president of corporate communications Suzanne DuLong said by phone that she could not comment.

Comments about the sale came from the leaders of both companies.

Brian Kelley, president and CEO of Keurig Green Mountain, said, “This transaction will deliver significant cash value for our shareholders and offers an exciting new chapter for our customers, partners and employees by combining Keurig Green Mountain with JAB’s global coffee platform. JAB fully supports Keurig Green Mountain’s culture and values as we continue to pursue our commitment to deliver innovative beverage solutions for consumers at the touch of a button.”

Bart Becht, JAB chairman, said, “Keurig Green Mountain represents a major step forward in the creation of our global coffee platform. It is a fantastic company that uniquely brings together premium coffee brands and new beverage dispensing technologies like the famous Keurig single serve machine. Keurig Green Mountain will operate as an independent entity to ensure it will further build on its coffee & technology strength and continue to serve all its partners to the best of its abilities.”

On Oct. 28, 2011, then-Virginia Gov. Bob McDonnell announced that Green Mountain Coffee Roasters would open a $180 million processing and distribution factory at the Shirley T. Holland Intermodal Park in Windsor. The plant anticipated that it would eventually need 800 employees. During a job fair the following spring, more than 1,000 applied.

Asked for how details about the sale, particularly where the Isle of Wight center is concerned, Amy Ring, the county’s assistant economic development director, said that the office didn’t have anything more than what was released.

“I don’t have any other information,” she added.

Isle of Wight Chamber of Commerce President Andrew Cripps also said he doesn’t have any more information than what’s already been given to media regarding the acquisition.

“I don’t know how it’s going to affect the county. I would think the new owners would still need to manufacture cups,” he said, adding, “You never know with the sale of a company what the new owners’ objectives are going to be. What is encouraging is the new ownership is already involved in the coffee manufacturing distribution business. They bring knowledge and a premium on the stock.”

Cripps added that it doesn’t appear that JAB will strip the company.

“They see potential for further growth,” he said.