Mondelez & D.E Master Blenders Complete Merger
DEERFIELD, Ill. — Mondelēz International Inc. and D.E Master Blenders 1753 B.V. completed the merger of their coffee businesses to create Jacobs Douwe Egberts (JDE). It is now the world's leading pure-play coffee company, with annual revenues of more than $5.5 billion.
The new company is based in the Netherlands and holds market-leading positions in 18 countries, as well as a strong emerging market presence. JDE owns some of the world’s leading coffee brands, such as Jacobs, Tassimo, Moccona, Senseo, L’OR, Douwe Egberts, Kenco, Pilão and Gevalia.
Upon closing, Mondelēz received cash of approximately $4.2 billion and a 44-percent interest in the new joint venture. Acorn Holdings B.V., owner of D.E Master Blenders, has a 56-percent share in JDE.
Acorn Holdings is owned by an investor group led by JAB Holding Co. in partnership with BDT Capital Partners, Quadrant Capital Advisors and Société Familiale d'Investissements. JAB is a privately held, affiliated group of entities focused on long-term investments in companies with premium brands. It has stakes in Coty Inc., Jimmy Choo, Bally, Belstaff, Peet’s Coffee & Tea, Caribou Coffee Co., Einstein Noah Restaurant Group, and Reckitt Benckiser PLC.
Cash and equity consideration paid to Mondelēz was reduced proportionally from previous estimates to reflect Mondelēz retaining its interest in its Korea-based joint venture, Dongsuh Foods Corp. The deal with D.E Master Blenders did include Mondelēz' coffee portfolio in France.
Moving forward, Mondelēz becomes a more focused snacking company, with some 85 percent of its net revenues derived from biscuits, chocolate, gum and candy. But by retaining a significant stake in JDE, Mondelēz will continue to benefit from future growth of the coffee category.
Deerfield-based Mondelēz International had 2014 revenues of more than $30 billion from such brands as Oreo, LU and Nabisco biscuits; Cadbury, Cadbury Dairy Milk and Milka chocolate; Trident gum; and Tang powdered beverages.