Krispy Kreme shares jumped more than 24 percent in morning trading after JAB Beech announced the $1.35 billion purchase of the chain, known for dedicated stand-alone shops with drive-through windows along major thoroughfares.
JAB Beech Inc., which already owns Keurig Green Mountain, Peet’s Coffee & Tea and Caibou Coffee, said it would take the North Carolina-based doughnut maker private, according to the San Francisco Chronicle newspaper.
The Luxembourg-based investment firm, which owns Keurig Green Mountain, Peet’s Coffee & Tea and Caribou Coffee, said it is taking the North Carolina doughnut company private in a deal worth about $1.35 billion.
JAB Holdings recently acquired Keurig, the company behind the single-serve coffeemakers that have revolutionized home coffee brewing.
JAB Holdings also owns a large stake in Jacobs Douwe Egberts, which produces Gevalia, Tassio and other brands, and is a major investor in Einstein Noah bagel shops, Coty beauty products and shoe seller Jimmy Choo, the newspaper said.
Krispy Kreme is expected to continue to operate independently, and is not expected to change plans announced in March to open up to 140 locations internationally and 30 in the United States.
JAB senior partner Peter Harf told the newspaper that the acquisition of Krispy Kreme was in line with his company’s strategy of investing in brands with considerable prospects for growth.
That consideration apparently justified JAB Beech’s offer of $21 per share, a significant premium over Krispy Kreme’s closing price of $16.86 on Friday.
Krispy Kreme’s board has already approved the transaction, which should close in the third quarter, and postponed the company’s annual shareholders meeting scheduled for June 14, the newspaper said.
