Joh A Benckiser, the German food conglomerate, together with other co-investors are preparing to apply for regulatory approval of their offer sheet to purchase Douwe Egberts Coffee. The price offered is Eur7.5 billion and the sale is expected to be completed by the first week of July at the latest.
The application was filed by DE Master Blenders, the Dutch coffee and team blender. Last month DE Master Blenders agreed to the purchase price offered by JAB at Eur12.50 per share.
JAB is the investment arm of the Reimann family and the sale is expected to be the industry's biggest ever sale. The offer is fully financed by JAB through a combination of Eur3 billion in debt and Eur4.9 billion in equity according to Bloomberg.
With the sale, the headquarters, R&D center and other plant facilities of Master Blenders would remain in the Netherlands. Once the deal is completed, it would include changes in the board of directors composition.
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