Keurig said today that it will pay about USD 624 million to buy back its shares owned by Italian coffee company Luigi Lavazza SpA.
Lavazza has been reducing its stake in Keurig to raise cash for deals with other companies.
Keurig, which sells single-serve coffee machine, said it will buy 5.23 million shares of its shares from Lavazza for USD 119.18 per share, a three per cent discount from Keurig's closing price of USD 122.87 on Friday.
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The deal is expected to close by March 3. At that time, Lavazza's stake in Keurig will drop to three per cent from 6.1 per cent.
Lavazza owned a 7.8 per cent stake in Keurig as of January 26, but has been steadily reducing its stake. It sold about two million shares between January 26 and February 3, and about 380,000 shares on January 23, according to filings with the US Securities and Exchange Commission.
Shares of Keurig Green Mountain Inc, based in Waterbury, Vermont, rose USD 1.14 to USD 124.01 in morning trading today.
