Mondelez Combines Coffee Business With D.E. Master Blenders
Mondelez International Inc. on Wednesday said it has agreed to combine its coffee portfolio with D.E. Master Blenders 1753 B.V. to create a new coffee company.
The new company will be called Jacobs Douwe Egberts and will be based in the Netherlands. It is expected to have annual revenue of more than $7 billion, the companies said.
Mondelez will receive about $5 billion in cash and own a 49% equity interest in the new company.
Mondelez also reported its first-quarter results Wednesday, posting a 70% decline in net profit, reflecting a jump in interest and other expenses in the period.