We believe the combination of our brands employees and our respective

We believe the combination of our brands employees

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Houtte. We believe the combination of our brands, employees and our respective geographic strengths makes for a stronger overall company and will enable us to continue to grow our presence in Canada.” Larry Blanford stated, “We are very pleased to welcome Van Houtte and its approximately 1,800 employees into the GMCR family. We are confident that Van Houtte, with its well-known portfolio of brands and strong management team, will help drive GMCR’s future success in Canada and throughout North America.” GMCR financed the Van Houtte acquisition through a combination of cash on hand and new debt financing. GMCR entered into $1.45 billion in senior credit facilities, consisting of:
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1. A term loan A facility in an aggregate amount of $250 million, 2. A term loan B facility in an aggregate amount of $550 million, 3. A U.S. revolving-credit facility in an aggregate amount of $450 million, and 4. An alternative currency revolving credit facility in an aggregate amount of $200 million. GMCR used a portion of the proceeds from these senior credit facilities to repay GMCR’s borrowings under its former credit facility and to pay the Van Houtte acquisition purchase price. GMCR also planned to use a portion of the proceeds from these senior credit facilities to support GMCR’s ongoing growth. Subsequent to the closing of the transaction, GMCR anticipated conducting a strategic review of Van Houtte’s U.S. coffee-services business, Filterfresh, in contemplation of a potential divestiture of Filterfresh, given GMCR’s current sales and marketing structure and its existing network of independent Keurig authorized distributors throughout the United States. The proceeds from any divestiture would be used to reduce GMCR’s outstanding indebtedness.
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Corporate Social Responsibility Shaped the Organizational Culture at GMCR Green Mountain was committed to conducting its business in a socially responsible manner. The company believed that doing well financially could go hand in hand with giving back to the community and protecting the environment. In their 2010 annual report, GMCR stated that their success was supported by their long-standing commitment to social and environmental responsibility (see Exhibit 11). That commitment, combined with GMCR’s entrepreneurial spirit and highly engaged workforce, enhanced their competitive advantage and provided GMCR an “opportunity to create better coffee, and brew a better world.” GMCR allocated 5 percent of their pretax profits to support social and environmental projects every year. GMCR posted their Corporate Social Responsibility Report at . Exhibit 11: GMCR ’s Corporate Social Responsibility Initiatives
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GMCR worked to protect the environment. Waste reduction and responsible energy use were two of GMCR’s top priorities and had been since 1983, when GMCR began composting in their retail coffee shops. In 1989 GMCR developed Earth-Friendly coffee filters. More recent examples of GMCR’s commitment to protecting the
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  • Spring '16
  • Harry Purcell

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