Mondelez Completes Coffee Merger with DE Master Blenders

Mondelēz International Inc. and D.E Master Blenders 1753 B.V. have completed merging their coffee businesses, including Mondelēz's coffee portfolio in France, to create Jacobs Douwe Egberts (JDE), which will be the world's leading pure-play coffee company, with annual revenues of more than $5.5 billion.

The new company will be based in the Netherlands and hold market-leading positions in 18 countries globally, as well as a strong emerging market presence. JDE will own 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. (AHBV), owner of D.E Master Blenders, will have a 56 percent share in JDE. AHBV 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.

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.

Moving forward, Mondelēz International becomes a more focused snacking company, with some 85 percent of 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, Ill.-based Mondelēz International  Inc. 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. 

AHBV is a member of the JAB Holding Co., a privately held affiliated group of entities, a privately held group focused on long-term investments in companies with premium brands, with stakes in Coty Inc., Jimmy Choo, Bally, Belstaff, Peet’s Coffee & Tea, Caribou Coffee Co., Einstein Noah Restaurant Group, and Reckitt Benckiser PLC.