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naissance on Feb 05, 2014 6:58pm
Coke to take 10% of GMCR
The Coca-Cola Co. agreed Wednesday to buy a 10 per cent stake in Green Mountain Coffee Roasters, as it seeks to cement ties with the fast-growing coffee company. Under the terms of the deal, Coke will buy about 16.7 million shares in Green Mountain for about $1.25-billion. The shares were priced at $74.98 each, representing the volume-weighted average price for the last 50 days. More Related to this Story • Beppi Crosariol Riedel serves up a new glass for tasting … Coke • YIELD HOG Five stocks that will raise their dividends early in 2014 • Coca-Cola unit split should help preserve the fizz A shovel brigade clears snow from sidewalks on front of businesses in downtown Hamilton after an overnight snowfall on Feb. 5, 2014. The snowfall is expected to continue until the late afternoon. Video Video: Market View: What happens when Canada's severe weather hits insurance company profits? CVS to become first major U.S. pharmacy chain to stop selling tobacco products at its 7,600 stores by October. Linda So reports. Retail Video: Major U.S. drugstore to stop selling cigarettes In return, Green Mountain will be the official maker of the soda giant’s single-serve cold beverages, built on its popular Keurig pod-based system. Some of the proceeds from the investment will go toward expansion of the Keurig Cold product. “This global relationship combines The Coca-Cola Company’s unparalleled brand, distribution and marketing strengths with GMCR’s innovative technology and beverage system expertise,” Brian P. Kelley, Green Mountain’s chief executive, said in a statement, referring to his company’s ticker symbol. News of Wednesday’s deal sent shares in Sodastream, one of the biggest makers of at-home soda machines, tumbling more than 8 per cent in after-hours trading. To alleviate dilution caused by the new stock issuance, Green Mountain will buy back additional shares. The deal is expected to close next month. Security Price Change KO-N Coca-Cola 37.61 0.13 0.347 % Add to watchlist GMCR-Q Green Mountain Coffee Roasters 80.88 0.74 0.923 % Add to watchlist