Lavazza also said in a statement that it had made a compulsory offer to purchase Carte Noire from Douwe Egberts BV, subject to approval by the European Commission and French authorities. But it did not mention any financial details.
Lavazza, world's seventh-biggest coffee roaster has offered to buy French brand Carte Noire for around 800 million euros i.e. $872 million in a deal that would treble the Italian company's turnover in France, sources said.
Lavazza also gave a statement that it had made a compulsory offer to purchase Carte Noire from Douwe Egberts BV, subject to approval by the European Commission and French authorities. But it did not mention any financial details.
Family-owned Lavazza said it had offered to purchase Carte Noire's roast and ground coffee, filter pads and Nespresso-compatable capsules business as well as the French company's plant in Laverune, near Montpellier.
Lavazza with this deal "will reach a leadership position in France, the fourth global coffee market and the second in Europe," Chief Executive Antonio Baravalle said.
In 2014, Baravalle told Reuters that the company planned to increase its annual revenues by almost 50 percent to 2 billion euros within 10 years to avoid being swallowed by bigger competitors.
According to a source, Lavazza's offers values to the French brand at 11.5 times its core earnings. And also the coffee maker beat off competition from several private equity groups that were looking at the French asset.
JP Morgan was the adviser for Lavazza on this acquisition, while Lazard worked with Mondelez's on the deal.