Luxembourg-based JAB Holding has entered into a definitive merger agreement to acquire Keurig Green Mountain, a US-based manufacturer of coffee makers and instant flavor pods, for $92.00 per share in cash or $13.9bn.

Under the deal, which has been unanimously approved by Keurig’s Board of Directors, JAB agreed to pay a 78% premium for Keurig’s shares.

JAB is acquiring Keurig in partnership with strategic minority investors who are already shareholders in Jacobs Douwe Egberts (JDE), a global tea and coffee company, including Mondelez International and entities affiliated with BDT Capital Partners.

Subject to customary closing conditions, including receipt of regulatory approvals, the transaction is expected to be closed during the first calendar quarter of 2016.

The deal requires the affirmative vote of holders of a majority of Keurig’s outstanding shares entitled to vote thereon.

Following completion of the transaction, which is not subject to a financing condition, Keurig will be privately owned and will continue to be operated independently by the company’s management team and employees, while it will remain headquartered in Waterbury, Vermont.

JAB chairman Bart Becht said: "Keurig Green Mountain represents a major step forward in the creation of our global coffee platform. It is a fantastic company that uniquely brings together premium coffee brands and new beverage dispensing technologies like the famous Keurig single serve machine.

"Keurig Green Mountain will operate as an independent entity to ensure it will further build on its coffee & technology strength and continue to serve all its partners to the best of its abilities."

Keurig has more than 80 brands, 575 beverage varieties and its Keurig hot and Keurig Kold beverage systems are claimed to deliver great taste, convenience and choice at the push of a button.

Keurig Green Mountain president and CEO Brian Kelley said: "This transaction will deliver significant cash value for our shareholders and offers an exciting new chapter for our customers, partners and employees by combining Keurig Green Mountain with JAB’s global coffee platform.

"JAB fully supports Keurig Green Mountain’s culture and values as we continue to pursue our commitment to deliver innovative beverage solutions for consumers at the touch of a button."

Keurig’s largest shareholder, Coca-Cola said it is backing the transaction, which comes more than two months after the introduction of the Keurig Kold system, which allows users to make carbonated drinks at home.

Coca-Cola chairman and CEO Muhtar Kent said: "We have enjoyed a strong partnership with Keurig Green Mountain, and will continue our collaboration with JAB in order to capitalize on the growth opportunities in the singleserve, pod-based segment of the cold beverage industry.

"We look forward to working with JAB, an experienced operator with a successful track record of investing in and growing consumer companies."