Tags: Coca-Cola | Invests | Green | Mountain | Coffee

Coca-Cola Invests $1.25 Billion in Green Mountain Coffee

Wednesday, 05 Feb 2014 05:36 PM

Green Mountain Coffee Roasters Inc., maker of the popular Keurig single-cup coffee brewer, said on Wednesday that the Coca-Cola Co. had bought a 10 percent stake in it for $1.25 billion and would help launch Green Mountain's planned cold drink machine.

Shares in Green Mountain soared 40 percent to $113.20 in extended trading, while those of its likely new rival, SodaStream International Ltd, tumbled 10.6 percent to $32.01.

Under their 10-year agreement, Green Mountain and Coca-Cola will collaborate on the development and introduction of Coca-Cola products on Green Mountain's planned cold beverage machine that will serve both carbonated and non-carbonated beverages, including soft drinks, tea and juice.

The new machine will carry products from multiple brands, Green Mountain's President and Chief Executive Brian Kelley said on a conference call with reporters.

Under the terms of the agreement, Coca-Cola will acquire roughly 16.7 million newly issued shares of Green Mountain. The new shares have been priced at $74.98, which represents the trailing 50-trading-day volume weighted average price as of market close.

Green Mountain separately reported better-than-expected quarterly profit on Wednesday.

The Waterbury, Vermont-based company reported net income of $138.2 million, or 91 cents per share, for the fiscal first quarter ended Dec. 28, up from $107.6 million, or 70 cents per share, a year earlier.

On an adjusted basis, the company earned 96 cents per share — 6 cents better than analysts on average had expected, according to Thomson Reuters I/B/E/S. .

Net sales rose to $1.39 billion.

© 2017 Thomson/Reuters. All rights reserved.

   
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Green Mountain Coffee Roasters, maker of the popular Keurig single-cup coffee brewer, said on Wednesday that Coca-Cola had bought a 10 percent stake in it for $1.25 billion and would help launch Green Mountain's planned cold drink machine.
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2014-36-05
Wednesday, 05 Feb 2014 05:36 PM
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