Green Mountain Coffee begins $35-per-share tender offer for Diedrich

By Lisa Kerner

Charlotte, N.C., Dec. 11 - Green Mountain Coffee Roasters, Inc. began its $35-per-share cash tender offer for all the outstanding shares of Diedrich Coffee, Inc. common stock, it was announced on Friday.

The offer will expire at midnight ET on Jan. 11, according to a Green Mountain news release.

On Dec. 7, Diedrich agreed to be acquired by Green Mountain in a transaction valued at approximately $290 million.

Green Mountain said it plans to fund its transaction using existing cash on hand and bank lines of credit.

The acquisition is expected to be completed in early 2010.

Diedrich's board of directors is recommending that shareholders tender their shares in the Green Mountain offer and not tender their shares in Peet's Coffee & Tea, Inc.'s $26-per-share cash-and-stock exchange offer.

As previously reported, Diedrich terminated its prior agreement with Peet's, an Emeryville, Calif., specialty coffee and tea company. Peet's exchange offer ends at midnight ET on Tuesday.

Bank of America Merrill Lynch and Ropes & Gray LLP are advising Green Mountain. Houlihan, Lokey, Howard & Zukin Capital, Inc. and Gibson, Dunn & Crutcher LLP are advising Diedrich.

Diedrich is an Irvine, Calif., specialty coffee roaster, wholesaler and retailer.

Green Mountain is a Waterbury, Vt.-based specialty coffee company.

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