D. E Master Blenders 1753 and Mondelēz International receive conditional approval for Jacobs Douwe Egberts
Posted: 11 May 2015 | Victoria White | No comments yet
D.E Master Blenders 1753 and Mondelēz have received conditional approval from the EC to combine their coffee businesses to create Jacobs Douwe Egberts…
D.E Master Blenders 1753 and Mondelēz International have received conditional approval from the European Commission to combine their respective coffee businesses and create the world’s leading pure-play coffee company – Jacobs Douwe Egberts.
The European Commission’s approval follows Jacobs Douwe Egberts’ commitment to divest the Carte Noire brand throughout the European Economic Area, the Merrild brand in Denmark and the Baltics, and licensing of the Senseo brand to a third party in Austria.
Jacobs Douwe Egberts expected to have annual revenues of more than EUR 5 billion
Jacobs Douwe Egberts will be the world’s leading pure-play coffee company with:
- Annual revenues of more than EUR 5 billion
- No. 1 or No. 2 position in over 18 countries across Europe, Latin America and Australia
- An international workforce of approximately 12,000 associates
- A portfolio comprising some of the most well-known coffee brands around the world:
- Power brands including: Jacobs, Tassimo, Moccona, Senseo and L’Or
- Leading local brands including: Douwe Egberts, Kenco, Pilao and Gevalia
“We are pleased the Commission has conditionally approved the creation of Jacobs Douwe Egberts, and we are excited to create the world’s leading pure-play coffee company. Through our iconic brands, rich histories and leading technologies, we intend to give coffee drinkers what they deserve: greater choice and access to some of the best coffee brands in the world,” said Pierre Laubies, CEO of Jacobs Douwe Egberts.
The partnership will allow Mondelēz International to focus their resources on their core snacks categories
“The combination of our coffee business with that of D.E Master Blenders 1753 creates a new global leader in the coffee category with a fantastic portfolio of technology platforms and global and local brands,” said Irene Rosenfeld, Chairman and CEO of Mondelēz International. “The partnership will allow us to continue to participate in the growth of the coffee category, while enabling us to focus our resources on our core snacks categories of chocolate, biscuits, gum and candy.”
On 7 May 2014, Mondelēz International and D.E Master Blenders 1753 announced their intention to combine their respective coffee businesses to create the world’s leading pure-play coffee company. The European Commission have now approved the combination of the respective coffee businesses subject to the conditions listed on their website. The transaction is anticipated to close in the course of 2015, subject to remaining closing conditions, at which point Mondelēz International will receive cash of approximately €4 billion and a 49% equity interest in Jacobs Douwe Egberts. Acorn Holdings, owner of D.E Master Blenders 1753, will hold a majority share in Jacobs Douwe Egberts and will have a majority of the seats on the board.