Keurig Green Mountain, Inc (GMCR), a leader in specialty coffee, coffee makers, teas and other beverages with its innovative brewing technology based in Waterbury, Vermont, announced on early Monday morning that on Saturday, February 21, 2015, that it has entered into an agreement to repurchase approximately 5.2 million shares of Keurig common stock beneficially owned by Luigi Lavazza S.p.A., at a purchase price of $119.18 per share, or $619.7 million.
The purchase price represents a 3.0 percent discount off the closing price of Keurig common stock on February 20, 2015. The repurchase will be financed through cash balances and Keurig’s existing credit facility. Lavazza previously owned 9,934,256 shares, or 6.1 percent. Keurig's market cap (value of all outstanding common shares) is $19.87 billion.
Shares were up shortly after Monday's opening about 1 percent to $124 (the 52-week range is $90.08/$158.87).
In connection with the entry into the stock repurchase agreement, Keurig also announced that it has entered into an amendment to its existing common stock purchase agreement with Lavazza dated August 10, 2010. The amendment eliminates Lavazza’s pre-emptive rights on future issuances of the company’s common stock and will become effective as of the closing of the stock repurchase.
WATERBURY, Vt.--(BUSINESS WIRE)--2.21.2015