Green Mountain Coffee buys up brew company

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WATERBURY, Vt. (AP) – Green Mountain Coffee Roasters Inc. is paying $104 million for the outstanding shares of Keurig Inc., a company that produces machines that brew single cups of coffee and other hot beverages.

Green Mountain Coffee already owns about 35 percent of the Wakefield, Mass., company.

The Waterbury-based company will pay $99.5 million in cash and assume $4.8 million in outstanding employee costs.

The plan is to close the deal in mid-June.

Keurig machines force hot water through grounds packaged in sealed cartridges called K-Cups.

Green Mountain Coffee’s accounts for more than 60 percent of Keurig’s K-Cup sales.

“The acquisition is part of Green Mountain Coffee’s strategy to grow its sales and earnings over the long term,” Green Mountain Coffee President Robert Stiller said in a statement. “Keurig, with its unique and patented system, is the established leader in an extremely attractive, high-growth market that dovetails nicely with our existing business.”

Green Mountain Coffee first invested in Keurig in 1996.

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