Shares in Dutch coffee maker JDE Peet's surged more than 16% after German conglomerate JAB said today it will increase its majority stake to 68% by acquiring all of Mondelez's shares in a €2.2 billion deal.
JAB said it will pay €25.10 per share for Mondelez's 86 million shares, or 17.6% stake, in JDE Peet's, owner of brands including Douwe Egberts and Kenco.
JAB will distribute 9% of JDE Peet's share capital to limited partners of JAB Consumer Partners, increasing the free float to 32%.
"We are fully committed to remaining an anchor shareholder of the world's leading pure-play coffee and tea company", JAB said in a statement.
JDE Peet's also announced a new CEO, saying that Rafael Oliveira, an executive at Kraft Heinz in various capacities over the past 10 years, would take up the role on November 1.
Shares in JDE Peet's were up 15.6% today, after sliding 22% since the start of this year amid uncertainty over how EU sanctions could hit the company's business in Russia and the lack of a CEO.
"The visibility on the new CEO and buy out of the Mondelez stake eliminates an overhang on the stock," analysts at JP Morgan said in a note.
Oliveira takes over from CFO Scott Gray who temporarily handled responsibilities after interim CEO Luc Vandevelde stepped down in August after just four months, with the company citing "unforeseen matters that required his immediate attention" as the reason for Vandevelde's resignation.
