It was a wild year for Keurig Green Mountain (NASDAQ:GMCR). Shares of the company behind the Keurig single-cup brewer began the year at $132.40 and crashed as low as $39.80 by last month, only to soar earlier this month on a buyout that will take the stock out at $92 a share.
There may have been more negative developments than positive ones through 2015 before the deal to go private was announced, but not all the news was bad. Let's look at some of the best headlines for Keurig Green Mountain this year.
The year got off to a good start when Dr Pepper Snapple Group (NYSE:DPS) announced that it would make its brands available for Keurig Kold machines. Keurig had announced a year ealier that it was entering the carbonated-beverage market with Coca-Cola at its side. Having Dr Pepper Snapple on board would mean that two of the top three soda companies would be providing flavor pods for the machine that hit the market in the fall.
Kitchen appliances are great for folks economizing counter space when they perform more than one primary function, and Keurig brewers got a boost this summer when Campbell Soup (NYSE:CPB) began making some of its soup flavors available in K-Cups for Keurig brewers. This partnership was announced in 2013, but the promised 2014 availability ultimately got bumped into 2015.
This may seem like an odd feature for Keurig machines. Do folks want the same system cranking out their morning Joe to be deployed as a broth brewer come lunchtime? Is there any chance that coffee beans could get into the soup or vice versa?
Keurig Green Mountain's fiscal fourth quarter report was sobering, but one positive nugget to come out of the announcement was a 13% dividend increase. The shrinking share price and expanding payout pushed the stock's yield to 3.2% at the time of the announcement.
The stock also shot higher following the report. Analysts were braced for an even larger decline on the bottom line, and it only helps that the stock was due for a bounce after getting slammed all year.
In a stunning development, privately held JAB Holding announced that it will acquire Keurig Green Mountain in a $13.9 billion deal. The buyout price of $92 a share was a fat 78% premium to where the stock had previously closed ahead of the news. The deal is expected to close during the first quarter of 2016.
If everything goes according to plan, there won't be too many headlines to highlight in 2016.
Rick Munarriz owns shares of Keurig Green Mountain. The Motley Fool has the following options: long January 2016 $37 calls on Coca-Cola, short January 2016 $43 calls on Coca-Cola, and short January 2016 $37 puts on Coca-Cola. The Motley Fool recommends Coca-Cola. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.