JAB Holding continued its string of acquisitions by financing about $6 billion in debt as part of a buyout deal to privatize Keurig Green Mountain, Inc. (The total amount involved in the buyout approaches a value of $13.9 billion, with a $92 per share price.)
Some analysts question whether shares should have been valued so high given how low prices had fallen since highs reaching $150 in 2014. Others speculate that the valuation took into account those values and could reflect a long-term K-cup coffee product strategy, and predictions that a successful rollout of the Keurig Kold system will help the new entity’s bottom line. Whatever taking the company private may mean, the buyout came as a surprise to many shareholders and has triggered some to ask if some disgruntled investors might bring suit.
The other noteworthy news item from JAB Holding is that Peter Harf is stepping down from the board of directors. According to an official announcement dated December 21, 2015, Harf removed himself “…in order to allow him to spend more time at JAB and its portfolio of companies.”
Learn more: http://www.jabholco.com/en/investor-relations.html