Keurig to Buy Rest of Bevyz for $220 Million -- 2nd Update

By Lauren Pollock And Annie Gasparro 

Keurig Green Mountain Inc. agreed to acquire the rest of drink-system maker Bevyz that it doesn't already own for about $220 million, adding to its technology capabilities ahead of the launch of its planned cold-drink platform.

Founded in 2004, Bevyz, which is a trademark of MDS Global Holding PLC, has developed a single-portion multidrink system that dispenses hot and cold beverages.

Bevyz was thought to be a rival to Keurig in its bid to enter the cold-drink market as it had unveiled its own plans to begin selling countertop carbonation machines in the U.S.

Keurig already owns about 15% of Bevyz, and PepsiCo Inc. also had a minority stake, which helped its machine gain more traction and confidence with consumers.

Keurig, well known for its single-serve coffee packets, is in the midst of developing a cold-beverage machine, which would allow consumers to make soda, iced tea, and other drinks at home using capsules. It announced a partnership with Coca-Cola Co. through which Coke has taken a 16% stake in Keurig.

Keurig and Coke aim to increase the market for home soda fountains, going against the current leader SodaStream International Ltd. Last month, Chief Executive Brian Kelley said Keurig plans to launch its cold brewer, code-named Geyser internally, next fall.

The acquisition of Bevyz also gives Keurig, whose market is almost entirely in the U.S., a bigger foothold in the global beverage market. Bevyz's 50 employees will continue to be based primarily in the Netherlands and Malta.

Regarding international expansion, Keurig has said it believes its brewers have potential in other markets, but that for now, it is mostly focused on what it says are vast growth opportunities at home.

The deal is expected to close in the next month. Keurig, which will fund the acquisition with cash on hand, also backed its guidance for the current quarter and year.

Write to Lauren Pollock at [e-mail]

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