Bart Becht, the man behind a 10 billion dollar coffee run is buying out DE Master Blenders 1753, the third largest coffee-maker company in the world. The bid, one of billionaire proportions is worth 7.8 billion euros in debt, or 12.50 euros a share. This deal makes sense, with several investors buying into consumer goods, combining it with “cheap debt and private capital staked by billionaire families”. With this kind of pattern happening, it should be assumed that these investors will be long-term. Thanks to the cheap debt, not only will these kind of buyouts probably repeat but most likely be concrete, with debt being so cheap. In fact, Becht is increasing the debt of DE from 258 million euros to 3 billion.
Link to article: http://dealbook.nytimes.com/2013/04/12/a-coffee-deal-for-the-long-haul/?_r=0
Photo Credit: http://www.colourbox.com/preview/1457467-345139-green-cup-of-coffee-on-money-isolated-on-white.jpg
