Vermont Business MagazineKeurig Green Mountain,Inc(NASDAQ: GMCR) announced that at a special meeting today, Keurig’s stockholders formally approved the previously announced merger agreement between Keurig and a JAB-led investor group.The shareholder vote was102,536,858 (68.72% of the outstanding shares) in favor,9,520,275 opposedand682,732 abstained.Subject to the terms and conditions of the merger agreement, at the effective time of the merger, each share of Keurig common stock will be cancelled and converted into the right to receive $92in cash, or $13.9 billion.This represents a 78 percent increase in the stock price from its close before the deal was struck.The transaction remains subject to various closing conditions and is expected to close by the end of March. The acquisition by European investor JAB Holdings was agreed to December 6.
In its proxy filings leading up to the special meeting, Keurig said that JAB keeps the management and facilities in place after an acquisition, instead of consolidating them into other operations. Keurig employs 6,000 worldwide, mostly in North America, with 2,000 of those in Vermont. Revenues last year were $5.2 billion.The proxy filings also revealed that discussions on an acquisition were held with an unnamed company last September, but that the unnamed company did not make an offer.
Keurig is Vermont's largest company. Last August it laid off about 200 workers here as part of a company-wide reduction of 330 workers in North America. Keurig's stock price, which peaked at $157.10 in November 2014, had slumped and bottomed out at $40.13 in November 2015 before recovering modestly and then leveling off around $90 per share after the acquisition was announced. Sluggish sales of its 2.0 coffee brewers and uncertainty of the success of the new Keurig Kold dampened enthusiasm for the volatile stock.
JAB's interest is regarded in expanding its global coffee-related businesses. Coca-Cola has a large holding in Keurig and was the driving force behind the Kold system. If the acquisition closes as approved, Coke would sell all of its shares in Keurig.
About Keurig Green Mountain,Inc.
Keurig Green Mountain,Inc. (Keurig) (NASDAQ: GMCR) is reimagining how beverages can be created, personalized, and enjoyed, fresh-made in homes and workplaces. We are a personal beverage system company revolutionizing the beverage experience through the power of innovative technology and strategic brand partnerships. With an expanding family of more than 80 beloved brands and more than 575 beverage varieties, our Keurig® hot and Keurig ® KOLD™ beverage systems deliver great taste, convenience, and choice at the push of a button. As a company founded on social responsibility, we are committed to using the power of business to brew a better world through our work to build resilient supply chains, sustainable products, thriving communities, and a water-secure world.
WATERBURY, Vt. (February24, 2016)— Keurig Green Mountain,Inc