The Reimann family investment arm Joh. A Benckiser has entered into an agreement to purchase DE Master Blenders 1753 NV for the price of Eur7.5 billion. This would be the biggest deal for the industry in the creation of a coffee conglomerate.
The price of each share to be paid by JAB is Eur12.50 according to a statement released today. This price is lower than the price pegged during its discussions last month and even at the lower price, the board of Master Blenders has approved the same.
This latest acquisition is part of a bigger plan involving a previous acquisition completed. JAB purchased Senseo maker from Sara Lee, giving the firm a platform wherein it can expand its coffee business. JAB has also agreed to purchase Peet's Coffee and Tea Inc and Caribou Coffee Co at a price of US$1 billion in 2012 and would complement this latest purchase.
According to a statement from Master Blenders interim CEO Jan Bennink, the lowered price is a result from the due diligence conducted for the firm.
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