GMCR Acquires Major Canadian Coffee Brand

Green Mountain Coffee Roasters, Inc. (GMCR) executed a Share Purchase Agreement pursuant to which GMCR will acquire all the outstanding shares of LJVH Holdings, Inc. (Van Houtte) from an affiliate of Littlejohn & Co., LLC, a private equity firm headquartered in Greenwich, Conn., for a cash purchase price of CAD$915 million or USD$890 million based on the exchange rate as of September 13, 2010, subject to adjustment. The transaction is subject to customary closing conditions, including certain regulatory approvals, and is expected to close by the end of calendar year 2010.

 

"We have had a strong and mutually beneficial relationship with Van Houtte since 2001 when they first became a Keurig licensee and we're confident that the company and its well known Canadian brands, including Van Houtte, Brulerie St. Denis, Les Cafes Orient Express Coffee and Brulerie Mont Royal are great additions to GMCR and our family of specialty coffee brands," says Lawrence J. Blanford, president and chief executive officer of GMCR. "We believe that Van Houtte, in combination with our Green Mountain Coffee, Tully's, Timothy's and Diedrich's brands, will contribute to our future success in Canada and throughout North America."

 

Headquartered in Montreal, Quebec, Van Houtte is a leading gourmet coffee brand in Canada in the home and office channels. Van Houtte roasts and markets gourmet coffee for home and office consumption and distributes it through its direct-to-store delivery and coffee services networks in Canada and the United States. Van Houtte's last 12 month's net sales were CAD$445 million as of August 21, 2010, or approximately USD$433 million based on the exchange rate as of September 13, 2010.

 

Van Houtte produces specialty coffee, tea and other beverages in a variety of packaged forms including K-Cup portion packs for the Keurig Single-Cup Brewing System sold under the Van Houtte, Bigelow and Wolfgang Puck K-Cup brands. Van Houtte employs approximately 1,700 people in Canada and the Unites States.

 

"This acquisition will enhance GMCR's Canadian presence and is expected to strengthen our North American geographic expansion with a well-known Canadian brand platform that includes roasting, manufacturing and distribution capabilities," Blanford continues. "We have great admiration for Van Houtte's leadership team and are pleased that its current president and CEO, Gerard Geoffrion has agreed to continue to lead the Van Houtte business in Canada following the close of the acquisition."