JAB Beech, a unit of JAB Holding Co. which has BDT Capital Partners as a minority investor, will buy the maker of the famed glazed doughnuts for $21 a share, or a total value of $1.35 billion.
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The German owner of Keurig coffee wants to take doughnut chain Krispy Kreme Doughnuts (NYSE:KKD) stock private in a deal worth $1.35 billion. As part of the agreement, Krispy Kreme will remain independently operated from its headquarters in Winston-Salem, N.C., and will no longer trade on the public markets. It does not own the UK Krispy Creme business which was bought out by management in 2011 and is now planning a flotation.
Krispy Kreme Doughnuts has been around for more nearly eight decades, with over 1,100 stores in more than 26 countries.
Transaction Terms; Postponement of Annual Meeting The transaction is not subject to a financing condition and is expected to close in the third quarter, subject to customary closing conditions, including receipt of regulatory and shareholder approvals.
Krispy Kreme Doughnuts woke up Monday to a glaze of cash.
Krispy Kreme shareholders are getting a caffeine boost after coffee giant JAB Beech said today it is acquiring the doughnut chain. The holding company, though, likely has bigger plans given the premium price it paid for this acquisition. In December a year ago they bought coffee-pod maker Keurig Green Mountain for $13.9bn. As of January, Krispy Kreme had 824 locations in U.S. and a total of 1,121 stores globally. Its other recent acquisitions include Einstein Brothers Bagels, Peet’s Coffee & Tea, Stumptown Coffee Roasters, and Caribou Coffee.
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Darryl Carr, senior director of corporate comms. for Krispy Kreme, is the company’s top PR executive. It is also a giant in single-serve coffee thanks to its $14 billion purchase of Keurig a year ago. Today, almost all of the company’s revenue comes from doughnuts. The fourth quarter previous year was the seventh straight quarter of growth for stores owned by the company, and a majority of the stores, which are franchised, also showed promising growth.
