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Clifford Chance acting for Mondelez International on its agreement with D.E. Master Blenders 1753 B.V. to combine coffee businesses

7 May 2014

Clifford Chance acting for Mondelez International on its agreement with D.E. Master Blenders 1753 B.V. to combine coffee businesses

Leading international law firm Clifford Chance is advising Mondelez International on an agreement announced earlier today that will see Mondelez International and D.E. Master Blenders 1753 B.V. combine their respective coffee businesses to create the world's leading pure-play coffee company, with annual revenues in excess of US$7 billion (€5 billion).  The new company will be called Jacobs Douwe Egberts (JDE) and be based in The Netherlands.

Clifford Chance's cross-border legal team is being led by Corporate partners Sarah Jones in New York and Robert Crothers in London, and includes Employment and Pensions partner Imogen Clark and Intellectual Property partner Vanessa Marsland.

As part of today's agreement, Mondelez  International will combine its wholly-owned coffee portfolio (outside of France) with that of D.E. Master Blenders 1753.  In conjunction with this transaction, Acorn Holdings B.V. – the owner of D.E. Master Blenders 1753 – has made a binding offer to receive Mondelez International's coffee business in France.

The combined company will own some of the world's leading coffee brands, such as Jacobs, Carte Noire, Gevalia, Kenco, Tassimo and Millicano from Mondelez International, and Douwe Egberts, L'OR, Pilao and Senseo from D.E. Master Blenders 1753.

In 2013, Mondelez International's wholly-owned coffee business generated approximately US$3.9 billion (€2.9 billion) in revenue, and D.E. Master Blenders 1753 B.V. generated approximately US$3.4 billion (€2.5 billion) in revenue. The transaction remains subject to regulatory approvals and the completion of employee information and consultation requirements.