NEW YORK — For an extra jolt to its finances, Green Mountain Coffee Roasters Inc. is selling a 7 percent stake to Lavazza, Italy’s best-selling espresso brand, for $250 million.
Together, the companies plan to develop new single-serving espresso machines and espresso capsules that will complement Green Mountain’s popular Keurig coffee makers, which brew single cups of tea and coffee.
The deal is expected to close in September and advances both companies’ strategies, they said.
Green Mountain wants to expand its successful single-serve K-Cup lines, and Lavazza has been buying companies in Argentina, Brazil, and India to fuel its growth. This is Lavazza’s biggest foreign acquisition.
Lavazza has agreed to buy newly issued shares at 10 cents par value common stock at a price equal to the 60-day volume weighted average price at closing, less 7.5 percent. The deal includes the possibility of buying additional shares up to 15 percent of Green Mountain.
The deal needs approval from US antitrust regulators.
The companies’ new single-serve products aren’t expected to reach the market until at least 2013.
The Keurig system’s success has been fueling growth for Green Mountain, which is based in Waterbury, Vt. As shoppers cut spending at cafes during the recession, the systems presented a less-expensive alternative. Rival Starbucks Corp. jumped into the market in September with its Via instant coffee line.
Last month Keurig said its third-quarter revenue rose 64 percent to $311.5 million, thanks largely to rising sales of Keurig machines and accessories, which accounted for about half of the company’s revenue.
