Benckiser in bid to purchase DE Master Blenders for $9.7bn
JAB, a group led by Joh. A. Benckiser is in talks to acquire coffee and tea manufacturer DE Master Blenders for $9.7 billion. The Amsterdam-based DE Master Blenders is the coffee and tea branch spun off by Sara Lee Corp. in 2012 and owns Pickwick and Tea Forté tea brands. The offer, subject to a financial review, is in an early stage and values the company at a 33% premium to the closing price of the previous day. Master Blenders would become the latest addition to the growing portfolio of JAB's tea and coffee investments, which include recent purchases of Peets Coffee & Tea Inc. for about $1 billion and Caribou Coffee Co. for $340 million. There is speculation that JAB submitted the offer for Master Blenders in response to interest from AB InBev, the world's largest beer brewer.