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Feb. 4, 2020, 10:09 a.m. EST

Wake up and smell the IPO. Peet’s Coffee owner edges closer to listing

Peet’s Coffee owner JAB Holdings edges closer to listing

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By Lina Saigol


Getty Images
Sign outside a Peet's Coffee store in Seal Beach, California (Photo by David McNew/Getty Images)

Europe’s drowsy equity market could be about to get a shot of caffeine.

JAB Holdings has taken another step toward the planned initial public offering of its coffee and tea business, which could raise up to $3.3 billion.

The private investment firm, which is backed by Germany’s billionaire Reimann family, has enlisted banks BNP Paribas /zigman2/quotes/206351084/delayed FR:BNP -0.89% and JPMorgan /zigman2/quotes/205971034/composite JPM +0.32% to advise it on a potential listing, according to Bloomberg .

JAB said in December that it would merge Jacobs Douwe Egberts , the world’s second-biggest coffee bean roaster in terms of volume after Switzerland-based Nestlé /zigman2/quotes/208115528/delayed CH:NESN -0.61% , with Peet’s Coffee, its premium U.S. retail brand, into a single group called JDE Peet’s ahead of a possible flotation of the division this year.

JDE Peet’s, which also owns Tassimo coffee pods and Pickwick and Senseo teas, will be headed up by Peet’s chief executive Casey Keller. The combined division will be present in 140 countries and have an annual revenue of €7 billion.

JAB hasn’t said how large a stake it would sell or where the company would be listed. Analysts have speculated that it could choose Amsterdam, which is home to Douwe Egberts. JAB said in December that it intends to remain a controlling shareholder after the IPO.

The Luxembourg-based investment firm controls around 12% of the global retail coffee market and has spent billions snapping up brands to compete with Nestlé and Starbucks /zigman2/quotes/207508890/composite SBUX -0.34% .

In 2018, Nestlé, which owns Nescafé and Nespresso, struck a $7.1bn licensing agreement with Starbucks to sell the U.S. chain’s packaged coffee around the world.

JAB, which also owns Krispy Kreme, Dr Pepper and Snapple, bought Peet’s in 2012 for $977.6 million and Douwe Egberts for $9.8 billion a year later. In 2014 it combined Douwe Egberts with the coffee businesses of Mondelez International /zigman2/quotes/201769764/composite MDLZ +0.80% to form JDE.

The Reimann family is also a major shareholder in British consumer goods company Reckitt Benckiser /zigman2/quotes/206856088/delayed UK:RB -1.09% and U.S. cosmetics maker Coty /zigman2/quotes/208645074/composite COTY +3.01% .

/zigman2/quotes/206351084/delayed
FR : France: Euronext Paris
36.28
-0.33 -0.89%
Volume: 3.41M
July 3, 2020 5:35p
P/E Ratio
5.85
Dividend Yield
0.00%
Market Cap
€45.30 billion
Rev. per Employee
€456,254
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/zigman2/quotes/205971034/composite
US : U.S.: NYSE
$ 92.66
+0.30 +0.32%
Volume: 0.00
July 2, 2020 4:00p
P/E Ratio
10.46
Dividend Yield
3.89%
Market Cap
$282.34 billion
Rev. per Employee
$497,647
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/zigman2/quotes/208115528/delayed
CH : Switzerland: SWX
CHF 105.12
-0.64 -0.61%
Volume: 2.46M
July 3, 2020 5:30p
P/E Ratio
24.46
Dividend Yield
2.57%
Market Cap
CHF292.76 billion
Rev. per Employee
CHF296,880
loading...
/zigman2/quotes/207508890/composite
US : U.S.: Nasdaq
$ 73.78
-0.25 -0.34%
Volume: 0.00
July 2, 2020 4:00p
P/E Ratio
26.28
Dividend Yield
2.22%
Market Cap
$86.18 billion
Rev. per Employee
$86,863
loading...
/zigman2/quotes/201769764/composite
US : U.S.: Nasdaq
$ 51.49
+0.41 +0.80%
Volume: 0.00
July 2, 2020 4:00p
P/E Ratio
20.19
Dividend Yield
2.21%
Market Cap
$73.50 billion
Rev. per Employee
$324,225
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/zigman2/quotes/206856088/delayed
UK : U.K.: London
7,446.00 p
-82.00 -1.09%
Volume: 451,320
July 3, 2020 4:35p
P/E Ratio
N/A
Dividend Yield
2.34%
Market Cap
£52.95 billion
Rev. per Employee
N/A
loading...
/zigman2/quotes/208645074/composite
US : U.S.: NYSE
$ 4.45
+0.13 +3.01%
Volume: 0.00
July 2, 2020 4:00p
P/E Ratio
N/A
Dividend Yield
0.00%
Market Cap
$3.40 billion
Rev. per Employee
$453,290
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