Green Mountain Coffee Roasters, Inc. (NASDAQ: GMCR) issued the following statement in response to the announcement that Peet's Coffee & Tea, Inc. (NASDAQ: PEET) ('Peet's') has submitted a revised offer to acquire Diedrich Coffee, Inc. (NASDAQ: DDRX) for $32.50 per share in a combination of cash and stock.
'We are focused on creating value for our shareholders,' said Lawrence J. Blanford, President and Chief Executive Officer of GMCR. 'In that regard, we remain firmly committed to this strategic combination and are in the process of evaluating our next steps.'
GMCR is confident that a combination with Diedrich will benefit consumers by enhancing the robust choice of products. With respect to timing, GMCR noted that it has thoroughly evaluated this transaction and is confident it can close promptly in early 2010. The coffee and coffee maker businesses are very large and highly fragmented and GMCR's sales constitute just a small fraction in each. GMCR believes that Peet's comments regarding a perceived timing advantage are significantly exaggerated and that Peet's is now resorting to misrepresentations in the absence of being able to offer significantly more value to Diedrich shareholders.
Additionally, GMCR's all-cash offer continues to be the superior proposal of record. In contrast, Peet's offer has a significant stock component and its shares have demonstrated significant volatility over the last 90 days. GMCR believes that Diedrich shareholders will recognize that a transaction with Peet's would result in a highly leveraged company.
BofA Merrill Lynch is serving as financial advisor to GMCR on this transaction and Ropes & Gray LLP is serving as its legal advisor.
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