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 lauren.pollock@wsj.com
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