Peet's Coffee Owner Plans to Heat Up $764 Million Public Offering

JDE Peet’s BV, owner of Peet's Coffee and Krispy Kreme, plans to list on Euronext Amsterdam.
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JDE Peet’s BV, owner of such brands as Peet's Coffee and Krispy Kreme, said Tuesday it plans to list on Euronext Amsterdam and looks to raise at least 700 million euros, or $764 million, from the initial public offering, as coffee and tea have done well despite the coronavirus shutdown.

“We believe JDE Peet’s is well-positioned for growth and we look forward to attracting new shareholders who can participate in our exciting future," CEO Casey Keller said in a statement.

The formal IPO offer, which will include a secondary offering, is expected “in the coming weeks, subject to market conditions,” the company said.

The company said it "has thus far been relatively resilient during the COVID-19 pandemic at a time of global economic turmoil." Restaurants, health clubs, and many other businesses have been forced to shut down or severely limit service to satisfy social distancing requirements.

"The coffee and tea category has benefited in the past from attractive growth fundamentals and has proven to be resilient in times of economic downturn," the company said.

JDE Peet said it believes the offer will strengthen its financial position by enabling it to repay part of its outstanding debt. 

The company said it generated total revenue of 6.9 billion euros in 2019, 79% of which was derived from 44 markets where it held a number one or number two market position in consumer packaged goods or out-of-home sales channels.

 Out-of-home coffee business serves hotels and offices and makes up about 21% of total revenue.

JDE Peet said it appointed BNP Paribas, Goldman Sachs International and J.P. Morgan Securities as joint global coordinators for the offer. The company said it intends to obtain an investment grade rating from a major rating agency within one to two years from the date of the prospectus

The European investment firm JAB Holding, which also owns such brands as Pret A Manger, Panera Bread, Krispy Kreme and Keurig Dr. Pepper, will retain control of JDE Peet after the listing.