Green Mountain Coffee Completes $905M Acquisition
WATERBURY, Vt. (AP) — Green Mountain Coffee Roasters Inc. said Friday it completed the $905 million acquisition of competitor Van Houtte.
The deal allows Green Mountain to cement a stronger foothold in the Canadian market.
Green Mountain expects the acquisition to slightly weigh on earnings per share in the next 12 months. It will adjust its financial guidance for next year when it reports its first-quarter results.
The company funded the deal with cash on hand and $1.45 billion in senior credit facilities.
Van Houtte, a Keurig single-cup coffee machine licensee, has coffee brands including Brulerie St. Denis, Les Cafes Orient Express Coffee, Brulerie Mont Royal and its namesake. The Montreal company roasts and markets gourmet coffee for homes and offices and distributes it through direct-to-store delivery and coffee services networks in Canada and the U.S.
The deal is the latest in a series of acquisitions for Green Mountain, which completed its $300 million takeover of Diedrich Coffee Inc. in May. Diedrich was also a roaster licensed to produce K-Cups, which fit into the Green Mountain's Keurig system.
Green Mountain shares finished up 27 cents at $31.84 on Friday.