WATERBURY, Vt. & TORINO, Italy – Green Mountain Coffee Roasters Inc. and Luigi Lavazza SpA have announced a $250 million common stock purchase agreement.

Under terms of the agreement, Lavazza has agreed to purchase $250 million in aggregate purchase price of newly issued shares of GMCR’s $0.10 par value Common Stock, or approximately 7% of GMCR’s current outstanding shares, at a price per share equal to the 60 day volume weighted average price at closing minus 7.5%.

In addition, the companies announced that they are working together to develop new single-serving espresso machines and espresso capsules that will complement Green Mountain's Keurig coffee makers.

The agreement, expected to be complete in September, also may provide Green Mountain the ability to distribute, market and sell existing coffee espresso single-cup machines utilizing Lavazza’s espresso technology for in-home use in the United States and Canada.