Mondelez International and D.E Master Blenders 1753 B.V. have announced they have completed the transactions to combine their respective coffee businesses to create Jacobs Douwe Egeberts (JDE), which will be the world's leading pure-play coffee company with annual revenues of more than €5bn.
Upon closing, Mondelez International received cash of approximately €3.8bn and a 44% 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% share in JDE.
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.
Following the transactions, Mondelez International becomes an even more focused snacking company, with approximately 85% of net revenues derived from biscuits, chocolate, gum and confectionary. By retaining a significant stake in JDE, however, Mondelez will continue to benefit from future growth of the coffee category.