Keurig Green Mountain (NASDAQ:GMCR) To Acquire Bevyz in January 2015 for A Total of $220 Million

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Keurig Green Mountain (NASDAQ:GMCR) recently made an announcement that it would be purchasing the rest of the equity in Bevyz. The company sealed this acquisition deal in the first week of the last month of 2014.  Bevyz is a subsidiary company of MDS Global Holding Ltd. It is important to mention here Keurig already owned 15 percent of the shares in Bevyz, and it agreed to purchase the rest for a total of $220 million.

News has it that the deal will be executed in the month of January, 2015. Bevyz was established back in 2004, and its operations are mainly limited to Malta and Netherlands. In those regions, the company is widely known for its single portion and unique drink system, commonly recognized by the name of Bevyz Fresh. The interesting thing about this drink system is that it distributes a wide array of drinks, including hot and cold beverages. The drinks include tea, coffee, water, energy drinks, fruit juices and soft drinks. This system allows the users to make a wide a variety of drinks with the snap of a finger. Bevyz Fresh does not leave any taste or residue from the previous drink.

Keurig Green Mountain (NASDAQ:GMCR) recently reported its revenue figures for the year 2014. The company saw a 14 percent increase in its net revenues on yearly basis, together with a 22 percent yearly increase in the net sales. The total sales for the fourth quarter of the fiscal year 2014 were reported to be at $950 million. The portion pack value saw an increase of 28 percent whereas the sales in its brewer segment declined by 5 percent.

The consensus target price for Keurig Green Mountain (NASDAQ:GMCR) currently stands at $108. It is important to note here that this price target is 20 percent below the current price of the stocks.

Keurig Green Mountain (NASDAQ:GMCR) is looking forward to extending its reach into the carbonated drinks market by sealing its recent deal with Bevyz. Coca-Cola and Keurig entered into a partnership back in September 2014, whereby Keurig would be offering Coca-Cola’s products in its brewing systems in the region of Canada and United States. Both these corporations are working together to design the new Keurig Cold Brewer for cold beverages. According to the rumors, this new system will be launched into the market in the fall of 2015.

Keurig Cold will serve both non-carbonated as well as carbonated drinks in single servings. The company further announced that it might introduce Honest Tea of Coca-Cola Company in its K-Cup packs. Honest Tea, if introduced, will be featuring 2 products: Black Iced Teas and Unsweetened Green Teas.

As for the stock prices of Keurig Green Mountain (NASDAQ:GMCR), the company currently trades in the range of $134.40 to $137.99. As for the market capitalization of the company, the figures currently stand at $22.61 billion with a P/E (price to earnings) ratio of 36.5.

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