July 02--Mondelez International on Thursday said it completed the merger of its coffee business with that of a smaller rival.
The move comes as the Deerfield-based company looks for ways to boost its results amid a slowdown in the global snacks business.
Under the deal with D.E. Master Blenders 1753, Mondelez received 3.8 billion euros and retained a 44 percent stake in the new Jacobs Douwe Egberts company. Mondelez declined to give the dollar value of the transaction, which would amount to $4.2 billion, based on Thursday's $1.11 exchange rate.
Mondelez spokeswoman Valerie Moens said the company would post the dollar value in a regulatory filing next week.
Mondelez previously said it would retain a 49 percent stake in the new company and get after-tax proceeds of about $5 billion. However, Mondelez is retaining its interest in Korea-based Dongsuh Foods, which is why the figures are lower, the companies said in a news release.
Executives from D.E. Master Blenders, the international coffee company that used to be part of Sara Lee, will lead Jacobs Douwe Egberts. The Netherlands-based company is expected to generate revenue of more than $7 billion, according to Mondelez.
acancino@tribpub.com
