The new company will be called Jacobs Douwe Egberts, the companies said in a statement. It will combine brands such as Gevalia and Tassimo from Mondelez International and Senseo from from D.E Master Blenders 1753.
When the transactions related to the deal are completed Deerfield-based Mondelez will get about $5 billion in cash and will hold and a 49 percent stake in the new company.
"We're delighted with this transaction and the substantial value we expect to create for our shareholders," Mondelez Chairman and CEO Irene Rosenfeld said in the statement. “By retaining a significant stake in the combined company, we'll continue to benefit from the future growth of the coffee category and share in the synergies and tremendous upside of this leading, one-of-a-kind coffee company."
Mondelez' wholly owned coffee business did about $3.9 billion in revenue last year while the whole company had $35 billion in revenue.
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