Tag: acquisitions

illycaffè Reports 12% Revenue Growth in 2025 Amid Record Coffee Prices

Posted on by Qahwa World
Trieste, Italy — Qahwa World

Italian coffee group illycaffè S.p.A. reported a solid performance for 2025, with group revenue rising 12% to €700 million (approximately US$817.2 million), supported by higher volumes across key markets including Italy, the United States, and Europe.

The company said it achieved its fourth consecutive year of strong organic growth despite a challenging environment marked by record-high green coffee prices and geopolitical uncertainty.

Financial Performance

  • Revenue: €700 million (+12%)
  • EBITDA: €90 million
  • Net profit: €20 million
  • Net financial position: €197 million

illycaffè attributed the financial position to higher raw material costs and continued strategic investments, including acquisitions completed during the year.

Commodity Pressure Remains High

The company highlighted significant pressure from coffee bean prices in 2025. Green coffee averaged 368 cents per pound, around three times the long-term historical average and more than 50% higher than in 2024.

illycaffè said it partially offset inflation through pricing strategies and cost-efficiency measures.

CEO Commentary

CEO Cristina Scocchia said the company maintained strong momentum despite external challenges:

“2025 was the fourth consecutive period of strong organic growth for the company, despite a particularly challenging external environment and the sharp rise in raw material prices.”

She added that the company continued strengthening its position across the value chain through targeted investments and integration.

Regional Performance

  • Italy: +14%
  • Europe: +23%
  • United States: +20% (at constant exchange rates)

The United States remained a strategic priority market for the company.

Strategic Acquisitions

During 2025, illycaffè expanded its operations through two key acquisitions:

  • Full acquisition of Swiss distributor Thalwil AG to strengthen its direct presence in European markets
  • 80% stake acquisition in coffee machine manufacturer Capitani, focused on portioned coffee systems for the home segment

The company said these investments strengthen its integration across the value chain, from production to consumer-facing equipment.

Outlook

illycaffè said it expects 2026 to remain challenging due to geopolitical tensions and economic uncertainty. However, it plans to continue supporting growth through international expansion, marketing investment, and sustainable innovation.

Keurig Dr Pepper Reports 97.75% of JDE Peet’s Shares Tendered

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Keurig Dr Pepper says post-closing acceptance period lifts its holding to 97.75% of shares, paving the way for buy-out proceedings and delisting from Euronext Amsterdam.

BURLINGTON, Mass., FRISCO, Texas and AMSTERDAM – Qahwa World

Keurig Dr Pepper Inc. (“KDP”) (NASDAQ: KDP) and JDE Peet’s N.V. (“JDE Peet’s”) (EURONEXT: JDEP) jointly announced that the post-closing acceptance period relating to the Offer (the “Post-Closing Acceptance Period”) expired today at 17:40 CEST.

During the Post-Closing Acceptance Period, 7,821,867 shares were tendered under the Offer, representing approximately 1.61% of the shares and an aggregate value of approximately €249,126,463.95. Together with the 466,712,270 shares that were already acquired by the Offeror, the Offeror will hold a total of 474,534,137 shares, representing approximately 97.75% of the shares and an aggregate value of approximately €15,113,912,263.45.

With reference to the Offer Memorandum, shareholders who accepted the Offer during the Post-Closing Acceptance Period will receive the Offer Price for each tendered share transferred for acceptance pursuant to the Offer during the Post-Closing Acceptance Period, under the terms and conditions of the Offer and subject to its restrictions. Settlement of the shares tendered during the Post-Closing Acceptance Period will occur, and payment of the Offer Price for each such share will be made, on April 15, 2026. The Offeror cannot guarantee that shareholders who tendered their shares for acceptance will receive payment on this date.

As a result of the acquisition of more than 95% of the shares by the Offeror, the Offeror will initiate statutory buy-out proceedings in accordance with Section 5.13.2 (Buy-Out Proceedings) of the Offer Memorandum and will implement the post-closing demerger in accordance with Section 5.13.4 (Post-Closing Demerger) of the Offer Memorandum. As previously announced, it has been decided, in consultation with Euronext, that the last day of trading of the shares will be April 29, 2026, and that the shares will be delisted from Euronext Amsterdam on April 30, 2026.

Announcements

Any announcements contemplated by the Offer Memorandum will be made by press release. Any press release issued by the Offeror will be made available on KDP’s website. Any press release issued by JDE Peet’s will be made available on JDE Peet’s website.

Offer Memorandum; Position Statement

Digital copies of the Offer Memorandum are available on the websites of JDE Peet’s and KDP. Digital copies of the Position Statement are available on JDE Peet’s website. Copies of the Offer Memorandum will be made available, upon request, free of charge at the offices of JDE Peet’s. The websites of JDE Peet’s and KDP do not constitute a part of, and are not incorporated by reference into, the Offer Memorandum and the Position Statement.

Notice to shareholders of JDE Peet’s in the United States

The tender offer is being made for the ordinary shares of JDE Peet’s, a public limited liability company incorporated under the laws of the Netherlands with shares listed on Euronext Amsterdam. US shareholders should note that the tender and related documents are subject to Dutch disclosure and procedural requirements, which differ from those of the United States.

JDE Peet’s shares are not listed on a US securities exchange and the company is not subject to the reporting requirements of the US Securities Exchange Act of 1934, and does not file reports with the US Securities and Exchange Commission (SEC).

The tender offer is being made in the United States in compliance with, and in reliance on, the exemption provided by Rule 14d-1(d), known as the “Tier II” exemption, under the Exchange Act and otherwise in accordance with Dutch law.

Receipt of cash pursuant to the tender offer by a US holder of JDE Peet’s shares will be a taxable transaction under US federal income tax law and applicable state, local and foreign tax laws. Each holder is advised to consult an independent professional adviser regarding the tax consequences.

It may be difficult for US holders to enforce their rights under US securities laws, as JDE Peet’s is located outside the United States and some or all of its officers and directors may reside outside the United States.

To the extent permissible under applicable law, JDE Peet’s and its affiliates or brokers may purchase shares outside the tender offer in the open market or through private transactions at prevailing or negotiated prices. Such purchases will not exceed the tender offer price. No purchases will be made in the United States on behalf of KDP.

Neither the SEC nor any US state securities commission has approved or disapproved the tender offer or passed upon its merits. Any representation to the contrary is a criminal offence in the United States.

Restrictions

The distribution of this press release may be restricted in certain jurisdictions. Persons who receive this document should inform themselves of and observe any such restrictions. Failure to comply may constitute a violation of applicable securities laws. Neither KDP nor JDE Peet’s assumes responsibility for any such violations.

This announcement is for information purposes only and does not constitute an offer or invitation to acquire or dispose of any securities or investment advice.

Forward-looking statements

This press release contains forward-looking statements relating to the impact of the transaction, future financial performance, cost savings and synergies. These statements are subject to risks and uncertainties that could cause actual results to differ materially.

Neither KDP nor JDE Peet’s undertakes any obligation to update forward-looking statements except as required by law.

Keurig Dr Pepper and JDE Peet’s: What Comes After the Deal Completion?

Posted on by Qahwa World

Amsterdam / Texas / Massachusetts – Qahwa World

The completion of Keurig Dr Pepper’s acquisition of JDE Peet’s is no longer the story itself. The real focus now shifts to what this deal means for the future of the global coffee industry.

With the transaction valued at approximately $18 billion now finalized, attention is turning to how this combined entity will reshape competition across more than 100 markets worldwide. The deal brings together a strong single-serve coffee platform in North America with a broad international footprint spanning multiple coffee segments.

Keurig Dr Pepper acquired 96.22% of JDE Peet’s shares at €31.85 per share, representing a total consideration of about €14.86 billion. The offer saw strong shareholder participation, with more than 466 million shares tendered by the close of the acceptance period on March 27, 2026.

You may like: JDE Peet’s Transfers Shares to Employees Under Incentive Plans

Having surpassed the 95% ownership threshold, the company is moving toward delisting JDE Peet’s from the Amsterdam exchange by the end of April, with the possibility of further steps to fully acquire the remaining shares.

A New Global Coffee Giant

This combination goes beyond a traditional merger. It creates a business expected to generate nearly $16 billion in annual revenue within a global coffee market valued at around $400 billion.

The new entity brings together a wide portfolio of well-known brands, including Jacobs, Douwe Egberts, Peet’s, L’OR, and Senseo. This positions it to compete across all segments—from roast and ground coffee to single-serve systems and premium offerings—covering a broad range of consumer preferences and price points.

Strategic Separation: Coffee and Beverages

One of the most significant next steps is the planned separation into two independent companies by the end of 2026.

The first will be a dedicated global coffee company, built to expand its international presence while leveraging brand strength, innovation, and local market expertise.

Read also: KDP Acquires JDE Peet’s, Names Oliveira Coffee CEO

The second will focus on refreshment beverages in North America, generating more than $11 billion in revenue and built on a portfolio of established brands across soft drinks, energy, and functional beverages.

This strategic split is designed to give each business greater operational focus and flexibility, allowing them to pursue growth strategies tailored to their respective markets.

Leadership and Integration Focus

Rafael Oliveira will lead the coffee business during this transition, bringing extensive international experience in consumer goods. Tim Cofer will lead the beverage-focused company following the separation.

Integration efforts are centered on delivering approximately $400 million in cost synergies over three years, alongside strengthening innovation capabilities and product development.

Financing Structure and Financial Outlook

The transaction was financed through a combination of new debt, preferred equity investment, industrial partnerships, assumption of existing liabilities, and available cash.

The deal is expected to be around 10% accretive to earnings per share in the first full year after closing, with combined net leverage estimated at approximately 4.5 times.

A Turning Point for the Coffee Industry

This transaction comes at a time when the global coffee sector faces ongoing supply challenges and shifting consumer preferences toward higher-quality and more diverse offerings.

You may read: Keurig Dr Pepper Seals $15.7 Billion JDE Peet’s Deal as 96% of Shares Tendered

Against this backdrop, the combined company is positioned to accelerate innovation, expand across channels, and strengthen its presence in fast-growing segments.

Integration is already underway, with a focus on operational efficiency and ensuring a smooth transition for employees, customers, and partners.

The completion of the deal marks the beginning of a new phase—one that could significantly reshape the structure and competitive dynamics of the global coffee industry.

Nestlé Considers Selling Blue Bottle Coffee Stake

Posted on by Qahwa World

Dubai – Qahwa World

Sources indicate that the Swiss food and beverage conglomerate, Nestlé, is exploring the sale of its interest in Blue Bottle Coffee. The company is reportedly working with investment bank Morgan Stanley to manage the potential transaction.

Background on the Investment

2017 Acquisition: Nestlé secured a majority 68% share in Blue Bottle Coffee in 2017 for an estimated $425 million. At the time, this deal valued the specialized US coffee group at $700 million.

Initial Strategy: Announcing the acquisition, Nestlé positioned Blue Bottle as a gateway into the fast-growing, ‘super-premium’ US coffee shop segment, intended to complement their existing portfolio of brands like Nescafé and Nespresso.

Current Operations: California-based Blue Bottle, founded by James Freeman in 2002, currently runs over 100 high-end cafés in markets including the US, Japan, South Korea, China, Hong Kong, and Singapore. The company continued to operate as a stand-alone entity after the majority acquisition.

Rationale for Potential Divestment

The reported move to divest Blue Bottle comes amidst several strategic shifts at Nestlé:

Efficiency Drive: The potential divestiture aligns with a broader efficiency drive by new CEO Philipp Navratil to streamline the company’s portfolio and deliver $3.8 billion (CHF 3$ billion) in savings by 2028, amidst slowing sales and rising cost pressures. The focus is reportedly shifting toward more scalable, global brands rather than niche physical retail operations.

Potential Discount: Three sources cited by Reuters suggest that the boutique coffee operator might be sold at a lower valuation than its 2017 purchase price, indicating the investment has not generated sufficient gains.

Operational Challenges: While Blue Bottle has nearly doubled its store count since the acquisition, the move to sell highlights the complexities of operating a high-cost, high-service café business that prioritizes the specialized experience (like hand-drip extraction) over the high-volume efficiency that large corporations typically seek.

Strategic Options and Future Focus

Partial Sale: One source mentioned Nestlé might pursue a partial sale, specifically offloading the physical café business while retaining Blue Bottle’s intellectual property (IP).

Leveraging the Brand: This strategy would allow the company to continue selling packaged Blue Bottle-branded products—such as wholebean coffee, ground coffee, and ready-to-drink (RTD) lines—mirroring the model of its lucrative Global Coffee Alliance with Starbucks. The $$7.1$ billion Starbucks deal, finalized a year after the Blue Bottle acquisition, grants Nestlé exclusive rights to market and distribute Starbucks-branded retail packaged coffee products outside of Starbucks’ own stores.

The re-evaluation of its coffee investments by Nestlé is part of a wider industry trend. Other major conglomerates, such as Coca-Cola (which is also reportedly reviewing its Costa Coffee chain) and JAB Holding Company (reducing its stake in JDE Peet’s), have also been adjusting their large-scale coffee strategies to focus on packaged products and core businesses.

JDE Peet’s Transfers Shares to Employees Amid Keurig Dr Pepper Takeover Offer

Posted on by Qahwa World

Amsterdam – Qahwa World

JDE Peet’s N.V. announced the transfer of shares under its employee incentive programs in accordance with Dutch takeover regulations, as part of ongoing disclosure obligations linked to the recommended public offer by Keurig Dr Pepper Inc. for all issued and outstanding shares in the company.

According to the statement issued under section 5, paragraph 4 of the Dutch Decree on Public Takeover Bids (Besluit openbare biedingen Wft), JDE Peet’s transferred a total of 265,951 shares to four participants in its incentive plan for no consideration, and an additional 47,262 shares to one participant as part of the settlement of 277,777 options exercised at a price of € 20.94 per share.

Following the transfers, the total issued share capital of JDE Peet’s remains unchanged at 488,178,642 shares, of which 3,228,542 shares are held as treasury stock. The nominal value of each share is € 0.01.

The company clarified that JDE Peet’s does not hold any shares in Keurig Dr Pepper, and it is not aware of the Offeror holding any shares in JDE Peet’s.

The announcement forms part of mandatory transparency requirements as the company proceeds through the formal offer process, which will ultimately be subject to approval by the Dutch Authority for the Financial Markets (Autoriteit Financiële Markten).

Carlyle and Boyu emerge as likely buyers for Starbucks’ China operations, sources say

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Dubai – Qahwa World

Private equity firms Carlyle Group and Boyu Capital have reportedly taken the lead in efforts to acquire a controlling stake in Starbucks’ China business.

Seattle-based Starbucks initiated a formal sales process in May 2025, seeking to bring in strategic partners amid slowing growth and stiff competition from local chains such as Luckin Coffee and Cotti Coffee.

According to sources, up to five firms made the final shortlist by September 2025, with Carlyle and Boyu now viewed as frontrunners for the deal. The transaction is expected to value the China operations at around USD 4 billion, and Starbucks may retain up to a 49 percent interest.

Carlyle already has experience in the coffee and restaurant sector: it acquired South Korea’s A Twosome Place chain and previously held a 28 percent stake in McDonald’s China, which it sold in 2023.

Meanwhile, Boyu has backed major food and beverage enterprises, including a role in investing in Mixue Group, and has co-ownership in the Honeymoon Dessert brand in China and Singapore.

Starbucks currently operates roughly 7,800 stores in China, making it its second-largest market by store count—and roughly 20 percent of its global total—though it contributes only about 8 percent of revenue.
MarketScreener

Unlike most markets where Starbucks licenses some stores, its entire China operation is wholly company-run.

While Starbucks endured three straight quarters of revenue decline in China in 2024, more recently the business has rebounded: it posted three consecutive quarters of year-over-year growth in 2025, including its first six-month stretch of positive same-store sales during the second quarter.
Comunicaffe International

Bain Capital Submits Bid to Acquire Costa Coffee from Coca-Cola

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Dubai – Qahwa World

US private equity firm Bain Capital has made an initial bid to acquire Costa Coffee from beverage giant The Coca-Cola Company, according to sources familiar with the matter.

The bid was submitted through Bain Capital’s Special Situations unit, which has invested more than $17bn since its launch in 2018 and currently manages over $21.6bn in assets. The investment group already counts boutique bakery-café chain Gail’s and restaurant brand PizzaExpress among its portfolio.

The development follows less than two weeks after Apollo Global Management, once considered the frontrunner, withdrew its interest in the UK-based coffee chain. Reports indicate that Coca-Cola has received fewer offers than expected for Costa, which operates more than 4,100 outlets worldwide. London-based TDR Capital, which has stakes in UK supermarket Asda and QSR brand Popeyes, also submitted a preliminary bid last month.

Coca-Cola has been exploring a sale of Costa since August 2025, nearly seven years after acquiring the company from Whitbread in January 2019 for $4.9bn. Speaking after Coca-Cola’s second-quarter earnings release earlier this year, CEO James Quincey admitted that the group’s investment in Costa Coffee “is not where we wanted it to be.”

A sale would likely see Coca-Cola incur losses of several billion dollars compared to its original purchase price. However, the company is expected to retain ownership of Costa’s ready-to-drink (RTD) beverage portfolio.

Founded in 1971, Costa Coffee is the UK’s largest coffee chain, with its home market accounting for around two-thirds of its global footprint. The brand reported 9% year-on-year sales growth in the 12 months ending 31 December 2023, reaching £1.2bn ($1.6bn), with the UK contributing 96% of total sales.