Green Mountain Coffee Roasters to Acquire Diedrich Coffee

December 8, 2009
/ Print / Reprints /
/ Text Size+

Diedrich Coffee Inc., Irvine, Calif., today announced that it has entered into a merger agreement with Green Mountain Coffee Roasters Inc. (GMCR), Waterbury, Vt. GMCR will acquire all of the outstanding shares of Diedrich Coffee for $35 in cash per share, for a total value of approximately $290 million.
In turn, Diedrich Coffee terminated a merger agreement with Peet's Coffee & Tea Inc., Emeryville, Calif. Diedrich Coffee’s board of directors had previously determined and announced that the GMCR $35 per share, all-cash offer was superior to the terms of the merger agreement with Peet's, as amended by the revised proposal received from Peet's on Nov. 30. Peet’s revised proposal expired on Dec. 1, and the company announced yesterday that it would not enhance its bid for Diedrich Coffee. Accordingly, Diedrich Coffee terminated the Peet's merger agreement, and GMCR paid on behalf of Diedrich Coffee to Peet's an $8.5 million termination fee.
Diedrich Coffee markets three brands of specialty coffees — Diedrich Coffee, Coffee People and Gloria Jean's Coffees — through office coffee service distributors, restaurants, specialty retailers and the company's online stores. Diedrich Coffee also is under license to produce K-Cups for GMCR’s Keurig business unit, which manufactures and sells Keurig gourmet single-cup brewing systems.
Lawrence J. Blanford, GMCR’s president and chief executive officer, said in a statement: “We are delighted to have entered into a definitive merger agreement with Diedrich and look forward to realizing the substantial benefits of this transaction. This combination further advances our objective of becoming a leader in the highly fragmented and competitive coffee and coffee maker businesses and provides significant growth opportunities for GMCR stakeholders.
“In particular, adding Diedrich’s three strong brand platforms, which are highly complementary to GMCR’s brands, as well as its manufacturing and distribution facilities in California will, upon completion of this transaction, enable us to more effectively reach consumers across North America and do so with an enhanced array of coffee choices.”
Paul C. Heeschen, chairman of the board of Diedrich Coffee, said in a statement: “We are pleased to have reached this agreement with GMCR. This transaction maximizes value for our shareholders and is expected to bring new opportunities for both our employees and brands to grow as part of a stronger business platform. We want to express our appreciation to our employees. Their hard work and dedication has been instrumental in building this great company. We look forward to working with GMCR to ensure a smooth transition and complete the transaction as expeditiously as possible.”
The transaction is subject to customary closing conditions, including, among others, regulatory approvals. GMCR expects the transaction to close in early 2010.

 Did you enjoy this article? Click here to subscribe to Beverage Industry.  

You must login or register in order to post a comment.



Image Galleries

Dinner with Tequila Don Julio

Diageo is taking its Tequila Don Julio brand on the road this summer with a rolling Airstream Speakeasy mobile craft cocktail bar. The team stopped in Chicago on July 29 to share some specialty tequila cocktails paired with food from Chicago restaurants Honey Butter Fried Chicken and The Radler as well as dessert venues Black Dog Gelato and Baker Miller. (Photos by Jennifer Haderspeck)

9/17/14 2:00 pm EDT

The Path to New Product Success: Navigating the latest trends for new beverage development

By attending this webinar, you will learn about the top trends and how they fit into the CPG market, which channels are influencing new products and technology, how Packaging fits into your product development, and ways you can use innovation to increase sales.


Maintaining beverage dispensing equipment

Iuliana Nita, Saint-Gobain Performance Plastics global marketing manager of food and beverage, offers her insights about ensuring sanitary performance of beverage dispensing equipment in foodservice applications. She also will offer some tips about choosing the right kind of tubing to handle acidic beverages.

Beverage Industry Magazine

BI September 2014 cover

2014 September

The September 2014 Beverage Industry includes a cover story on our Wholesaler of the Year, The Odom Corp., as well as articles about single-cup and iced coffees, cconvenience store growth, vegetable flavors, and more. Check it out today!

Table Of Contents Subscribe

Beverage Insider eNewsletter

Are you an Insider? Subscribe to Beverage Industry’s weekly e-newsletter to receive news headlines, new product information and magazine highlights.   

Coffee Segments

Which coffee segment will be impacted the most by coffee bean increases?
View Results Poll Archive


Cleaning-in-Place: Dairy, Food and Beverage Operations, 3rd Edition

This book addresses the principles of cleaning operations, water supply issues and the science of detergents and disinfectants.

More Products


Beverage Industry Webinars are an easy, effective and convenient way to get educated and informed on the latest industry trends and topics. All Webinars are FREE unless indicated. For more information, check out our Events page!


facebook40 twitter    youtubelinkedgoogle+ icon 40px