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Peter Harf, chair and managing partner of Europe’s JAB Holdings, is retiring after more than 40 years, as the investment group he created diversifies away from its troubled consumer-focused portfolio.
The 78-year-old German executive will be succeeded by managing partners and co-chief executives Joachim Creus and Frank Engelen, JAB announced on Monday. Creus will become chair and Engelen will serve as vice-chair.
Harf’s retirement ends a four-decade run in which he became one of Europe’s most powerful dealmakers, turning the heirs of the reclusive Reimann family into billionaires in the process.
He is credited with transforming an obscure German chemicals company, controlled by the Reimanns, into a powerful conglomerate owning major stakes in some of the world’s largest consumer brands, including Keurig Dr Pepper, Pret A Manger, Krispy Kreme and JDE Peet’s.
Alongside running the Reimann family’s wealth, including its investments in consumer brands, JAB’s partners raised capital from other wealthy families and endowments, to fund a dealmaking spree in excess of $50bn.
However, JAB’s over-reliance on consumer brands was badly exposed by dramatic changes in behaviour during the pandemic, and by the subsequent inflationary surge, which squeezed spending power.
The group recently reported the value of its portfolio was slashed by $10.1bn last year, as its investments in coffee, bakeries and beauty were marked down dramatically. In total, the fair value of JAB’s investments in its various subsidiaries tumbled 24 per cent to $39bn.
JAB previously said it was confident the strong operational performance of its portfolio would result in a re-rating of its valuation in the medium to long-term.
JAB is diversifying aggressively into life insurance and asset management in search of more reliable income streams. A spokesperson for the Reimann family said Creus and Engelen had “set forth a compelling strategic vision to prepare JAB for the next generation of sustainable long-term growth”.
The spokesperson added the pair had in the past year launched the firm’s new life insurance division and made its first acquisition in the sector. The deal for Prosperity Life, which manages $25bn of assets, valued the insurer at more than $3bn.
Despite its new focus, JAB continues to hold significant stakes in consumer companies, including beauty group Coty and Panera Brands, which owns bakeries and coffee shops.
The company on Monday said Harf will remain “fully invested” in the firm and continue to serve as chair of the Reimann family’s non-profit organisation, the Alfred Landecker Foundation.
“I would like to express my gratitude to the Reimann family who, more than 40 years ago, entrusted me to embark on the journey of a lifetime,” Harf said. “It’s now time to pass the baton to a new generation of leadership.”
