NEW YORK (TheStreet) -- Shares of Keurig Green Mountain (GMCR) are up 1.21% to $136 in pre-market trade after the specialty coffee and coffeemaker businesses technology company said it has entered into an agreement to acquire the outstanding equity of MDS Global Holding ("Bevyz") that it does not already own.
The transaction is valued at approximately 178 million euros, in cash, or approximately $220 million based on exchange rates as of the close of business on December 3, 2014.
Keurig currently owns approximately 15% of Bevyz on a fully diluted basis and will fund the acquisition with cash on hand. The transaction is subject to customary closing conditions and is expected to close in the next month.
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TheStreet Ratings team rates KEURIG GREEN MOUNTAIN INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate KEURIG GREEN MOUNTAIN INC (GMCR) a BUY. This is driven by several positive factors, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, expanding profit margins, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company is trading at a premium valuation based on our review of its current price compared to such things as earnings and book value."