JDE Peet's shares surge on Mondelez buyout, new CEO

Shares in JDE Peet’s surged in Amsterdam on Monday after German investment company JAB bought out part-owner Mondelez on the same day the Dutch coffee and tea maker appointed a new chief executive.

JDE Peets, which was formed in 2015 through the merger of Mondelez’s coffee division with Douwe Egberts, announced that seasoned FMCG veteran Rafeal Oliveira – currently EVP and president of international markets at Kraft Heinz – would join the company next month.

“I am thrilled to welcome Rafa to JDE Peet’s. His deep understanding of global markets and consumers, strategic acumen, and proven performance in the consumer sector is complemented by a passion for innovation and team development,” said JDE Peet’s chair Peter Harf.

Meanwhile, JAB agreed to buy Mondelez’s remaining 86m shares in JDE Peet’s for €25.10 a share, a 32% premium to the stock’s closing price of €18.96 on Friday.

The acquisition of the 17.6% stake, valued at around €2.2bn, lifts JAB’s holding in the company to 68%.

Additionally, JAB distributed 43m shares in aggregate, representing 9% of the total share capital, to more than 70 institutional investors, increasing its free float to 32%.

“These transactions represent a major milestone for JDE Peet’s, which is now a more widely held blue chip company,” said JAB’s managing partner, vice chair and CEO Joachim Creus.

“JAB has strong conviction in the resilience of the global cofee sector and the longterm value creation prospects of JDE Peet’s. We are fully committed to remaining an anchor shareholder of the world’s leading pure-play cofee and tea company.”

The stock was 17.4% higher at €22.26 by 1129 in Amsterdam.

“The visibility on the new CEO and buy out of the Mondelez stake eliminates an overhang on the stock,” JPMorgan analysts said in a research note.