D.E Master Blenders 1753 and Mondelez International, Inc. announced yesterday that they 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 (JDE).
The European Commission’s approval follows JDE’s 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.
JDE will be the world’s leading pure-play coffee company with:
– Annual revenues of more than €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 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.”
Conditional Approval
On May 7, 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.
In October of 2014, the European Commission was formally notified about the proposed transaction. Today, the European Commission approved the combination of the respective coffee businesses subject to the conditions listed on their website.
New Management Team
The JACOBS DOUWE EGBERTS leadership team will be comprised of executives from both D.E Master Blenders 1753 and Mondelēz International:
- Pierre Laubies, Chief Executive Officer
- Fabien Simon, Chief Financial Officer
- Roland Weening, President Europe II & ANZ
- Jan van Bon, President Europe I & Brazil
- Taras Lukachuk, President EEMEA
- Peter Mueller, President Professional
- Luc Volatier, Global Vice President Operations
- David Smith, Global Vice President R&D
- Fiona Hughes, Global Vice President Marketing
- Bernd Dreymuller, General Counsel
- Chet Kuchinad, Global Vice President HR
Transaction Completion
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 percent equity interest in JACOBS DOUWE EGBERTS.
Acorn Holdings B.V. (AHBV), owner of D.E Master Blenders 1753, will hold a majority share in JDE and will have a majority of the seats on the board, which will be chaired by current DEMB Chairman, Bart Becht.
AHBV is owned by an investor group led by the JAB Holding Company (JAB) in partnership with BDT Capital, Quadrant Capital Advisors and Société Familiale d’Investissements. Mondelēz International will have certain minority rights.
