Mondelēz International and D.E Master Blenders 1753 are combining coffee businesses to create a world leading pure-play coffee company, which would represent revenue of more than US $7 billion. The new company, to be called Jacobs Douwe Egberts (JDE), will be based in the Netherlands and will hold leading market positions in more than two-dozen countries. The two companies own some of the world’s leading coffee brands, such as Jacobs, Carte Noire, Gevalia, Kenco, Tassimo and Millicano from Mondelēz International and Douwe Egberts, L’OR,Pilão and Senseo from D.E Master Blenders 1753. “Jacobs Douwe Egberts will leverage the rich histories of both companies, combining our complementary geographic footprints, portfolios of iconic brands and innovative technologies to offer more people around the world more access to high-quality coffee and allowing the company to capitalise on the significant growth opportunities in a highly attractive market,” said Pierre Laubies, CEO of D.E Master Blenders 1753 and prospective CEO of the combined company. “We’re delighted with this transaction and the substantial value we expect to create for our shareholders,” said Irene Rosenfeld, Chairman and CEO of Mondelēz International, in the statement. “By retaining a significant stake in the combined company, we’ll continue to benefit from the future growth of the coffee category and share in the synergies and tremendous upside of this leading, one-of-a-kind coffee company.” The parties have entered into an agreement to combine Mondelēz International’s wholly owned coffee portfolio (outside of France) with D.E Master Blenders 1753. In conjunction with this transaction, Acorn Holdings B.V. (“AHBV”), owner of D.E Master Blenders 1753, has made a binding offer to receive Mondelēz International’s coffee business in France. The parties have also invited Mondelēz International’s partners in certain joint ventures to join the new company. In 2013, Mondelēz International’s wholly owned coffee business generated approximately $3.9 billion in revenue, and D.E Master Blenders 1753 generated approximately $3.4 billion in revenue.
The transaction is expected to be completed in the course of 2015.
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