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JAB Holding Company, the majority shareholder in coffee companies Jacobs Douwe Egberts and Keurig Green Mountain, has agreed to acquire all of the shares of doughnut chain Krispy Kreme for a total value of $1.35 billion.
The value of the transaction, which is not subject to a financing condition and is expected to close in the third quarter of the year, represents a price of $21 per share – approximately a 25% premium on the company’s closing price at the end of last week.
The deal will bolster JAB Holdings’ retail portfolio, after it paid $280m for Nordic coffee shop chain Espresso House last year.
Krispy Kreme chairman of the board Jim Morgan said: “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.”
And the company’s CEO, Tony Thompson, added: “JAB’s experience and industry knowledge make them the ideal partner to help grow the iconic Krispy Kreme brand throughout the world. We remain focused on our long term strategy and continuing to offer our premium, high-quality doughnuts and sweet treats to consumers around the world. We look forward to working with JAB to continue bringing the joy that is Krispy Kreme to a growing number of customers. Together with our talented team and our passionate franchisees, we will continue to build on the Krispy Kreme culture, values and commitment to our customers and guests.”
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. We feel strongly that Krispy Kreme will benefit greatly from our long-term focus and support for management’s vision in building on the legacy of this exciting brand as an independent standalone entity.”
© FoodBev Media Ltd 2020