Keurig Green Mountain, Inc. (Keurig) (NASDAQ: GMCR), a leader in specialty coffee, coffee makers, teas, and other beverages with its innovative brewing technology, announced today that it has entered into an agreement to acquire the outstanding equity of MDS Global Holding p.l.c. (“Bevyz”) that it does not already own. The transaction is valued at approximately €178 million euros, in cash, or approximately $220 million based on exchange rates as of the close of business on December 3, 2014. Keurig currently owns approximately 15% of Bevyz on a fully diluted basis and will fund the acquisition with cash on hand. The transaction is subject to customary closing conditions and is expected to close in the next month.
Founded in 2004 by Edouard Sterngold and Eva Schwarz, Bevyz has developed a unique, patented single-portion multi-drink system that dispenses an extensive range of premium tasting hot and cold beverages.
“The acquisition of Bevyz adds unique and complementary technology and research and development capabilities,” said Brian Kelley, Keurig’s President and CEO. “As a result of our strong balance sheet, we’re able to make this strategic acquisition while investing in organic growth and returning cash to shareholders.”
As previously announced, Keurig will launch its Keurig Cold platform in the fall of 2015. This innovative new beverage system will offer consumers a convenient, sustainable way to enjoy freshly-made cold beverages including carbonated drinks, enhanced waters, juice drinks, sports drinks and teas at home with the one-touch simplicity, quality and variety that North American consumers love about the Keurig® brand hot system platform.
“We are extremely excited about this development as we believe Keurig’s innovative approach and business model are directly aligned with our mission to deliver superior, in-home beverage experiences to consumers,” added Edouard Sterngold, Bevyz’s founder and CEO. “We’re excited to become part of the Keurig team and believe this acquisition is financially compelling for our shareholders and creates new opportunities for our employees.”
Following the acquisition, Bevyz’s roughly 50 employees will become part of Keurig’s technology and product systems teams and are expected to continue to be located primarily in the Netherlands and Malta.
Keurig reiterated its fiscal year 2015 and first quarter 2015 guidance provided in its November 19, 2014 earnings press release.
In connection with this transaction, BofA Merrill Lynch served as financial advisor to Keurig and Perella Weinberg Partners served as financial advisor to Bevyz and E. Landau Law Offices of Jerusalem, Israel and The Giannuzzi Group of New York acted as legal counsel to Bevyz.
Launch of STK Rebel Represents Next Phase of Company’s Growth Platform
Restaurant Projected to Open in 2015
NEW YORK–(BUSINESS WIRE)–
The ONE Group Hospitality, Inc. (“The ONE Group”) (STKS) today announced that it has completed an agreement to open an STK Rebel in Denver. STK Rebel maintains the unique features, vibe and energy of STK, with a menu and price point targeted to a broader national and international market. The venue is expected to open in 2015.
The new STK Rebel will be located at 16th and Market in the heart of the popular LODO district of Denver. The restaurant is situated in a brand new mixed use building developed by Integrated Properties, Inc.
“The launch of STK Rebel is a milestone for The ONE Group, and we are thrilled to be bringing this concept to the Denver market,” said Jonathan Segal, CEO of The ONE Group. “STK Rebel reflects an expansion of our STK brand that will provide a more accessibly priced option for guests across the country, while offering the same innovative culinary features, energy and vibe dining experience that has driven the success of STK. We are extremely excited for the STK brand to become part of the Denver community.”
“The ONE Group has been built on a foundation of innovation and reinvention – and STK Rebel is the next step in this evolution,” Segal continued. “Our development pipeline is tracking at the pace we have been communicating to the investment community since we went public, and STK Rebel will be a key element of our growth strategy moving forward as we expand our presence both in the US and abroad. We look forward to sharing more updates soon.”
The ONE Group will host a conference call to discuss third quarter 2014 financial results on Thursday, November 13, 2014 at 5:00 PM Eastern Time. Hosting the call will be Jonathan Segal, Chief Executive Officer, and Sam Goldfinger, Chief Financial Officer. A press release containing the third quarter 2014 financial results will be issued after market close Thursday, November 13, 2014.
The conference call can be accessed live over the phone by dialing 877-407-3982 or for international callers by dialing 201-493-6780. A replay will be available after the call and can be accessed by dialing 877-870-5176 or for international callers by dialing 858-384-5517; the passcode is 13593354. The replay will be available until December 13, 2014.
About The ONE Group
The ONE Group is a global hospitality company that develops and operates upscale, high-energy restaurants and lounges and provides hospitality management services for hotels, casinos and other high-end venues both nationally and internationally. The ONE Group’s primary restaurant brand is STK®, a modern twist on the American steakhouse concept with locations in major metropolitan cities throughout the U.S. and in London. STK Rebel SM, a more accessibly priced STK ® with a broader menu, is an extension of the STK ® brand. The ONE Group’s food and beverage hospitality services business, ONE Hospitality SM, provides the development, management and operations for premier restaurants and turn-key food and beverage services within high-end hotels and casinos. Additional information about The ONE Group can be found at www.togrp.com.
Cautionary Statement on Forward-Looking Statements
This press release includes “forward looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “anticipate”, “believe”, “expect”, “estimate”, “plan”, “outlook”, and “project” and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. A number of factors could cause actual results or outcomes to differ materially from those indicated by such forward looking statements, including but not limited to, (1) the ability to recognize the anticipated benefits of the business combination, which may be affected by, among other things, competition, our ability to open new restaurants and food and beverage locations in current and additional markets, grow and manage growth profitably, maintain relationships with suppliers and obtain adequate supply of products and retain our key employees; (2) factors beyond our control that affect the number and timing of new restaurant openings, including weather conditions and factors under the control of landlords, contractors and regulatory and/or licensing authorities; (3) changes in applicable laws or regulations; (4) the possibility that The ONE Group may be adversely affected by other economic, business, and/or competitive factors; and (5) other risks and uncertainties indicated from time to time in our filings with the SEC, including our Annual Report on Form 10-K filed on April 1, 2014.
Investors are referred to the most recent reports filed with the SEC by The ONE Group Hospitality, Inc. Investors are cautioned not to place undue reliance upon any forward looking statements, which speak only as of the date made, and we undertake no obligation to update or revise the forward-looking statements, whether as a result of new information, future events, or otherwise.