Green Mountain completes Van Houtte acquisition
December 20, 2010
Green Mountain Coffee Roasters Inc. (GMCR), Waterbury, Vt., announced that it has successfully completed its acquisition of Van Houtte, or LJVH Holdings Inc., for an aggregate cash purchase price of $905 million, subject to adjustment for final exchange rate and future adjustment based on Van Houtte’s working capital, net indebtedness and pre-closing taxes as of immediately prior to the acquisition’s closing.
“We are very pleased to welcome Van Houtte and its approximately 1,800 employees into the GMCR family,” said Lawrence J. Blanford, president and chief executive officer of GMCR, in a statement. “We are confident that Van Houtte, with its well-known portfolio of brands and strong management team, will help drive GMCR’s future success in Canada and throughout North America.”
Van Houtte roasts and markets gourmet coffee for home and office consumption and distributes coffee through direct-to-store delivery and coffee service networks in Canada and the United States. The company also produces specialty coffee, tea and other beverages in a variety of packaged forms including K-Cup portion packs for the Keurig System sold under the Van Houtte, Bigelow and Wolfgang Puck K-Cup brands.
As previously announced, GMCR expects the Van Houtte acquisition to be neutral to slightly dilutive to earnings per share in the first 12 months after closing, and accretive thereafter. GMCR expects to adjust its fiscal 2011 estimates to include the effects of the acquisition when it reports its fiscal first quarter results.