AMSTERDAM, the Netherlands – JDE Peet’s B.V. (the “Company”, and together with its consolidated subsidiaries, the “Group”), the world’s largest pure-play coffee and tea group by revenue, today announced its intention to proceed with an offering (the “Offer”) and admission to listing and trading of its ordinary shares (the “Shares”) on Euronext Amsterdam (“Euronext Amsterdam”), a regulated market operated by Euronext Amsterdam N.V. (the “Admission”).
The Offer is expected to comprise a primary offering of newly issued Shares by the Company and a secondary offering of existing Shares. The Offer is expected to take place in the coming weeks, subject to market conditions and other relevant considerations.
JDE Peet’s HIghlights
- The Group is the world’s largest pure-play coffee and tea group by revenue, serving approximately 130 billion cups of coffee and tea in the financial year ended 31 December (“FY”) 2019 in more than 100 developed and emerging countries.
- Through its more than 50 leading global, regional and local coffee and tea brands, the Group offers an extensive range of high-quality and innovative coffee and tea products and solutions to serve consumer needs across markets, consumer preferences and price points.
- The Group has a track record of growing its sales and market penetration in its coffee and tea categories by combining its strong innovation capabilities, trusted portfolio of brands and broad go-to-market access. Its ongoing commitment to innovation has enabled the Group to become over-indexed in the fastest growing parts of the coffee and tea categories, including single-serve and whole-beans, and grow its global market share.
- In FY 2019, the Group generated total revenue of €6.9 billion, of which 79% was derived from 44 markets where it held a number one or number two market position in consumer packaged goods (“CPG”) or Out-of-Home sales channels.
- The Group has delivered strong growth and profitability, acting as a consolidator in the coffee and tea categories since 2013, through a combination of strategic mergers and acquisitions (“M&A”) and organic growth.
- The Group has increased revenue by a compound annual growth rate (“CAGR”) of 3.1% and Adjusted EBIT by a CAGR of 9.6% from €6.5 billion and €1.3 billion, respectively, in FY 2017 to €6.9 billion and €1.6 billion, respectively, in FY 2019. This translated into an Adjusted EBIT margin of 16.3% in FY 2017 and 18.1% in FY 2019.
- In addition, the Group generated free cash flow of €0.7 billion in FY 2017, €1.0 billion in FY 2018 and €1.2 billion in FY 2019 enabling it to de-lever its balance sheet while funding its M&A strategy.
- At a Group-wide level, the Company is targeting, in the medium- to long-term:
- revenue organic growth (at constant commodity prices) of 3% to 5%;
- Adjusted EBIT growth of 5% to 8%;
- free cash flow conversion % of approximately 70%; and
- a leverage ratio below 3.0x by the end of the first half (“H1”) of FY 2021.
- The Group intends to obtain an investment grade rating from a major rating agency within one to two years from the date of the Prospectus.
- The Group’s business has thus far been relatively resilient during the COVID-19 pandemic at a time of global economic turmoil. While working through the significant effects of the current crisis, the Group has since 31 December 2019 traded in line with management’s expectations and the Group believes its medium- to long-term targets continue to be achievable.3
- The Group is led by an experienced and entrepreneurial global leadership team. Through medium- to long-term incentives, the interests of the global leadership team are aligned with that of the Group and its shareholders. In particular, certain members of the global leadership team invest their own capital in the Group.
- JAB Holding Company S.à r.l. (“JAB”) is a leading investor in consumer goods and services overseeing more than US$100 billion of assets under management, focused on long-term value creation through the building of global champions and challengers. In JAB, the Group has a proven, long-term oriented shareholder with strategic vision. JAB is committed to a majority ownership in the Company for the long-term.
Offer Highlights
- The Offer is expected to comprise a primary component of approximately €700 million and a secondary component.
- The Company intends to use the expected net proceeds of the issue of any new Shares to repay part of its outstanding debt in order to improve its leverage ratio (estimated to be around 3.6x on the settlement date).4
- It is the intention of the Company and its shareholders to create a meaningful free float in the Shares on Admission.
- An application is expected to be made for the Admission to listing and trading of the Shares on Euronext Amsterdam.
- The Company believes that the Offer will strengthen its financial position by enabling it to repay part of its outstanding debt. The Admission will further provide the Company with access to capital markets, which it may use to support further growth of the Group and finance strategic M&A transactions, as they become available.
- The Offer is to be structured as a public offering to institutional and retail investors in the Netherlands and as a private placement to certain institutional investors in various other jurisdictions.
- The Company has appointed BNP Paribas, Goldman Sachs International and J.P. Morgan Securities plc as joint global coordinators for the Offer (the “Joint Global Coordinators”).
Casey Keller, Chief Executive Officer of the Company said, “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. Thanks to the hard work and dedication of our teams around the world, particularly during the past few extraordinary months, we are poised to build on our role as a global leader in coffee and tea.”
“We believe the launch of JDE Peet’s into the public markets will provide additional opportunities for growth and shareholder value creation,” said Olivier Goudet, Chief Executive Officer and Managing Partner of JAB, and Chair-designate of the Company’s board of directors (the “Board”).
“Mondelēz International has valued its investment in JDE and we are very pleased to continue our relationship with JDE Peet’s. We believe that the strength of the global portfolio of brands and the clear strategic path forward will help the company continue to build on a long tradition of innovation and dedication to serving its customers and consumers,” added Dirk Van de Put, Chairman and Chief Executive Officer of Mondelēz International, Inc. (“Mondelēz International”).
