Mondelez enters into global coffee joint venture

Deerfield-based Mondelez International and D.E. Master Blenders 1753 announced they have combined their coffee businesses to create Jacobs Douwe Egberts, which they say will be the world's leading pure-play coffee company with annual revenues of more than 5 billion euros.

The new company will be based in the Netherlands and hold market-leading positions in 18 countries globally as well as a strong emerging market presence. JDE will own some of the world's leading coffee brands, such as Jacobs, Tassimo, Moccona, Senseo, L'OR, Douwe Egberts, Kenco, Pilão and Gevalia.

Mondelez International received approximately 3.8 billion euros in case and a 44 percent interest in the new joint venture, subject to standard post-close adjustments. Acorn Holdings, owner of D.E. Master Blenders 1753, will have a 56 percent share in the business

The cash-and-equity consideration paid to Mondelez International was reduced proportionally from previous estimates to reflect Mondelez International retaining its interest in its Korea-based joint venture, Dongsuh Foods Corp.

AHBV is owned by an investor group led by JAB Holding Company in partnership with BDT Capital Partners, Quadrant Capital Advisors and Société Familiale d'Investissements.