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Keurig Green Mountain, Inc. Message Board

  • chip.wrecks chip.wrecks Oct 14, 2010 10:21 AM Flag

    tigerpac, re: acquisitions

    I posted up the info for the past 3 acquisitions.
    Tully's, Timothy's and Diedrich

    Why did they acquire Diedrich you asked, you keep Peet's from getting the distribution channel and to expand their own distribution resources.

    That being said they have quite a track record for purchases.

    Tully's was $40Mil and added $41 mil of VAPOR
    TIMOTHY'S WAS $156mIL and added $168MIL Vapor
    Diedrich was $305mil and added $318mil of Vapor

    In essence they swapped REAL cash for non existent assets made of VAPOR so they could consolidate the revenue and portend to be growing rapidly.

    They've paid premiums for the slaes revenue in excess of what retail customers pay on the markup.

    So they sold Tully $1 of goods and then paid them $2 to buy it back? Same with each acquisition. This is a shell game ofor a PONZI scheme pick which, IMO of course

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    • You left out the Keurig acquisition. Pretty dumb people eh? :-))

    • Interesting theory...but you are assuming that all of these company's revenues were derived from k-cups, which with the exception of DDRX is not the case. I admit that the DDRX purchase was over the top as the bidding war had gotten carried away. Peet was the only coffee company that realized what they could do with k-cups...however, they couldn't afford the VH purchase price.....why Starbucks are some other major player didn't buy VH is a head scratcher in retrospect.

      • 1 Reply to tigerpac
      • The VH acquisition will extend the track record and apparently no one else saw it as value to pay more than twice what they appear worth.

        I am anxious to see how much of the $890Mil is going to be VAPOR added to the balance sheet.
        They are going to borrow cash to give VH and receive VAPOR in exchange for it and then have to pay interest on the borrowing for air.

        What a strategy or PONZI SCHEME. IMO

 
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