Keurig Green Mountain (NASDAQ:GMCR), which manufactures coffee-makers and instant flavor pods, said it would be sold to an investor group led by Germany's JAB Holding Co (JAB) for $13.9bn.
The deal was pitched at a 78% premium to Keurig's Friday close.
The move comes amid slumping sales of the pods and brewers that Keurig popularized. The company has been cutting costs, including trimming 5% of its workforce in August, and introducing new products to offset the downturn in its core offerings.
The acquisition will make JAB the leader in the $6.1bn North American single-serve coffee market, in which Nestle has a small presence.
JAB is the investment vehicle of the billionaire Reimann family of Germany.
"Keurig Green Mountain represents a major step forward in the creation of our global coffee platform," JAB Chairman Bart Becht said in a statement.
JAB bought U.S. coffee companies Caribou Coffee Co and Peet's Coffee & Tea in 2012.
Shares of Keurig were trading at $89.89 shortly after the opening, below the offer price of $92.00 per share. The stock through Friday had dropped more than 60% this year.
The Coca-Cola Co. (NYSE:KO), Keurig's largest shareholder, said it is backing the deal, which comes more than two months after the introduction of the Keurig KOLD system, which allows users to make carbonated drinks at home.