By Lisa Kerner
Charlotte, N.C., Dec. 8 - Diedrich Coffee, Inc. agreed to be acquired by Green Mountain Coffee Roasters, Inc. for $35.00 in cash per share, or a total of approximately $290 million, it was announced on Tuesday.
According to a Diedrich news release, the company terminated its prior agreement with Peet's Coffee & Tea, Inc. and Green Mountain paid to Peet's the $8.52 million termination fee as required by the agreement.
Peet's, an Emeryville, Calif., specialty coffee and tea company, announced it plans to continue its exchange offer to acquire Diedrich shares for a combination of cash and a fraction of a share of Peet's common stock representing total consideration of $26.00 per share. The exchange offer ends at midnight ET on Dec. 15.
Green Mountain said it expects to close its transaction with Diedrich in early 2010 and will finance the deal using cash on hand and its existing bank lines of credit.
Diedrich chairman Paul Heeschen and other directors and executive officers of the company holding more than 32% of the total outstanding common stock agreed to tender their shares into Green Mountain's tender offer.
The Green Mountain merger agreement includes a graduated reverse termination fee, with termination fees ranging between $8.52 million and $11.52 million payable to Diedrich.
"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," Green Mountain president and chief executive officer Lawrence J. Blanford said in a company news release.
"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," Blanford said.
Based in Irvine, Calif., Diedrich is a specialty coffee roaster, wholesaler and retailer.
Green Mountain is a Waterbury, Vt.-based specialty coffee company.
| Acquirer: | Green Mountain Coffee Roasters, Inc.
|
| Target: | Diedrich Coffee, Inc.
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| Announcement date: | Dec. 8
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| Transaction total: | $290 million
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| Price per share: | $35.00
|
| Termination fee: | $8.52 million to $11.52 million
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| Expected closing: | Early 2010
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| Stock price for target: | Nasdaq: DDRX: $35.15 on Dec. 7
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