Keurig to buy back Lavazza stock

Keurig Green Mountain has entered into an agreement to repurchase approximately 5.2 million shares of its common stock off Lavazza. Keurig has agreed to pay US$119.18 per share for Luigi Lavazza’s beneficially owned common stock. Keurig’s common stock closed 3 per cent higher than the agreed purchase price on 20 February. The company will finance the repurchase through cash balances and its existing credit facility. Keurig has also amended its existing stock purchase agreement with Lavazza, which dates back to August 2010. The amendment eliminates Lavazza’s pre-emptive rights on Keurig’s stock in the future. The agreement will become effective following the closing of the stock repurchase.