Shares of coffee machine maker Keurig Green Mountain (GMCR) surged on news that the company will be acquired for $13.9 billion, or $92 a share, by an investor group led by JAB Holding Co. The acquisition will give Keurig shareholders a much needed caffeine kick after slumping sales of coffee pods have dragged down the stock price. Keurig shares have dropped 61 percent this year, with fourth quarter revenue falling 13 percent to $1.04 billion. The coffee machine manufacturer has been working to introduce new products and reduce costs, cutting 5 percent of its workforce back in August. Keurig’s largest shareholder Coca Cola (KO) is backing the deal. JAB plans to run Keurig as a private subsidiary that will be based in Vermont.
Subscribe to TheStreetTV on YouTube:
For more content from TheStreet visit:
Check out all our videos:
Follow TheStreet on Twitter:
Like TheStreet on Facebook:
Follow TheStreet on LinkedIn:
Follow TheStreet on Google+:
source
