Coffee giant JDE Peet’s raises 2.25 billion euros in IPO

JDE Peet’s, the merger between Jacobs Douwe Egberts and Peet’s Coffee, has raised €2.25 billion in its initial public offering (IPO), marking Europe’s biggest IPO since 2018.

Despite the current coronavirus situation, the closing offer was brought forward due to strong response by investors. The IPO took place on Euronext Amsterdam and lasted 10 days.

Earlier this week, JDE Peet’s argued that the demand for coffee and tea has remained resilient during the coronavirus climate.

In December last year, investment company JAB Holdings’ announced that it would merge Jacobs Douwe Egberts (JDE) and Peet’s Coffee and explore an IPO of the new company which would have revenues of approximately €7 billion.

Shares in the coffee and tea maker were priced at €31.50 euros, valuing the firm at €15.6 billion.

JDE Peet’s, whose brands include Peet’s Coffee, L’OR, Jacobs Coffee, Douwe Egberts and Kenco, raised €700 million through the sale of new shares.

Existing shareholders Acorn Holdings – owned by JAB Holding Company – and Mondelēz sold an additional €1.55 billion worth of stock for a total of €2.25 billion, representing a 16.5% stake in the company.

Following the offering, JAB will remain the company’s largest shareholder through its Acorn company with a 62% stake, followed by Mondelēz which will retain a 23.4% stake in the firm and two seats on the board.

JDE Peet’s also secured cornerstone investment worth €100 from Quantum Partners and Palindrome Master Fund, both managed by Soros Fund Management, €361m from Fidelity Investments and €300 million from JAB Holdings.

“Seeing the investor interest in JDE Peet’s reinforces the belief in our strategy and solidifies our role as a global leader in coffee and tea. The dedication of our global team is what drives our success and I thank them all again for their commitment,” said Casey Keller, CEO of JDE Peet’s.

Olivier Goudet, CEO and managing partner of JAB, and chair-designate of the board, added: “We are very encouraged by the strong response we received from investors and are excited to reach this strategic milestone. We welcome our new shareholders and believe that they, like JAB, will continue to recognise the strong potential for growth in JDE Peet’s business.”