Green Mountain Coffee Roasters, Inc. Finalizes Van Houtte Acquisition

Green Mountain Coffee Roasters, Inc. announced that it has successfully completed its acquisition of LJVH Holdings Inc. for an aggregate cash purchase price of $905 million, subject to adjustment for final exchange rate and future adjustment based on Van Houtte's working capital, net indebtedness and pre-closing taxes as of immediately prior to the acquisition's closing.

Van Houtte roasts and markets gourmet coffee for home and office consumption, and distributes it through Van Houtte's direct-to-store delivery and coffee services networks in Canada and the U.S. GMCR expects to continue operations from Van Houtte's current location in Montreal, Quebec under the leadership of Gerard Geoffrion, Van Houtte's president and CEO.

Van Houtte's Canadian brands include Van Houtte®, Brûlerie St. Denis®, Les Cafés Orient Express Coffee® and Brûlerie Mont Royal®. Van Houtte also produces K-Cup® portion packs for the Keurig® Single-Cup Brewing System under the Van Houtte®, Bigelow® and Wolfgang Puck® K-Cup brands.

As previously announced, GMCR expects the Van Houtte acquisition to be neutral to slightly dilutive to earnings per share in the first twelve months after closing, and accretive thereafter. GMCR expects to adjust its fiscal 2011 estimates to include the effects of the acquisition when it reports its fiscal first quarter results.

As also previously announced, GMCR has financed the Van Houtte acquisition through a combination of cash on hand and new debt financing. GMCR has entered into $1.45 billion in senior credit facilities, consisting of (a) a term loan A facility in an aggregate amount of $250 million, (b) a term loan B facility in an aggregate amount of $550 million, (c) a U.S. revolving credit facility in an aggregate amount of $450 million and (d) an alternative currency revolving credit facility in an aggregate amount of $200 million. GMCR has used a portion of the proceeds from these senior credit facilities to repay GMCR's borrowings under its former credit facility and to pay the Van Houtte acquisition purchase price. GMCR also will use a portion of the proceeds from these senior credit facilities to support GMCR's ongoing growth.

BofA Merrill Lynch and CIBC have served as financial advisors, and Ropes & Gray LLP and Goodmans LLP have served as legal advisors, to GMCR for the Van Houtte acquisition.

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