WINSTON-SALEM, N.C., May 9 (UPI) — JAB Holdings announced Monday it will acquire Krispy Kreme Doughnuts Inc. in a move to pair its coffee products with the sweet treat.
The holding company will purchase Krispy Kreme for about $1.35 billions — $21 a share in cash for a 25 percent premium from Friday’s stock close — less than half a year after it bought Keurig Green Mountain for $13.9 billion.
JAB previously purchased Caribou Coffee Co., Peet’s Coffee & Tea and Danish coffee-bar chain Baresso Coffee A/S.
Krispy Kreme will continue to be independently operated from its current headquarters in Winston-Salem, N.C., the companies said in a release.
The transaction is expected to close in the third quarter, subject to regulatory and shareholder approvals.
Jim Morgan, chairman of the board of directors of Krispy Kreme, said, “For nearly 80 years, our iconic brand has been touching and enhancing lives through the joy that is Krispy Kreme. This transaction puts us in the best possible position to continue to spread that joy to a growing number of people around the world while delivering significant value to Krispy Kreme shareholders. I am confident the JAB team is the right partner with whom to continue building upon our incredible legacy.”
Krispy Kreme has more than 1,100 shops in more than 26 countries around the world. Products, including its original glazed doughnut, are also sold in grocery stores and online. Krispy Kreme also sells branded bags of coffee, which is also available in K-cups for use with Keurig brewing machines.
The company grew heavily in the early 2000s but got into trouble with over expansion. Its stock reached a high of $50 in 2003 but dropped to $1.01 in 2009.
Krispy Kreme reported a fourth-quarter profit of $8.25 million last quarter compared with $6.55 million a year earlier. Revenue also rose 4 percent to $130.4 million.
Peter Harf, senior partner at JAB, said, “We are thrilled to have such an iconic brand as Krispy Kreme joining the JAB portfolio. This is yet another example of our commitment to investing in extraordinary brands with significant growth prospects.”
JAB’s purchase of Keurig was finalized last December.