German investor in $9.8 bln bid for Douwe Egberts firm

German investor Joh A Benckiser (JAB) is to buy the owner of Douwe Egberts coffee in 7.5-billion-euro ($9.8 billion) deal to bolster its position in a hot drinks industry driven by innovation and emerging market growth.

D.E Master Blenders 1753, the Dutch owner of Douwe Egberts coffee and Pickwick tea, said on Friday it had reached conditional agreement on a 12.50 euros per share cash takeover offer from a group of investors led by JAB.

JAB, the investment vehicle of the billionaire Reimann family, wants to create a global coffee brand on a par with global leader Nestle SA.

It has already built up a portfolio of coffee brands including Caribou Coffee Co Inc and Peet's Coffee & Tea Inc in the United States, and wants to buy D.E Master Blenders, which has a strong position in Europe.

The offer is below JAB's original bid proposal of 12.75 euros per share, but above D.E Master Blenders' closing share price of 12.23 euros on Thursday.

"D.E Master Blenders (DEMB) has a very strong management team, fantastic brands and enormous expertise and potential in the coffee and tea categories," Bart Becht, Chairman of Joh. A. Benckiser, said in a statement.

"JAB and its partners intend to use DEMB as their platform for both organic growth as well as acquisitions in the fast moving consumer goods coffee and tea categories."