Green Mountain Coffee acquires rival Van Houtte for $890 million

The US firm Green Mountain Coffee Roasters Inc (GMCR), a recognised leader in speciality coffee industry, yesterday agreed to buy Canadian brewer Van Houtte, held by LJVH Holdings Inc, for approximately C$915 million ($890 million) in an all-cash deal, adding popular brands in its portfolio for penetration into the Canadian market.

Under the deal, GMCR will acquire all of the outstanding shares of LJVH Holdings, which is indirectly controlled by US private equity firm Littlejohn & Co LLC headquartered in Greenwich, Connecticut, a statement said.

Waterbury, Vermont-based GMCR is a leader in the specialty coffee industry in North America, well-known for its award-winning coffees and innovative brewing technology.

GMCR operates two business units, the specialty coffee unit, which includes the Green Mountain Coffee and Tully's Coffee brands, and the Keurig unit which manufactures gourmet single-cup brewing systems. The Company employs over 1,400 people.

GMCR president and chief executive officer Lawrence Blanford said, ''We believe that Van Houtte, in combination with our Green Mountain Coffee, Tully's, Timothy's and Diedrich's brands, will contribute to our future success in Canada and throughout North America.''

Montreal-based Van Houtte is leading coffee brand in Canada in the home and office channels. Van Houtte roasts and markets gourmet coffee through its direct-to-store delivery and coffee services networks in Canada and the U.S in a variety of packaged forms. The firm's net sales were C$445 million for the last 12 months ended 21 August, employing around 1700 people.