Krispy Kreme Doughnuts Inc. (NYSE: KKD) agreed to be acquired by JAB Beech Inc., a JAB Holding Co. subsidiary in a $1.35 billion deal.
Investors in the coffee-and-doughnut chain will receive $21 a share in cash, Winston-Salem, North Carolina-based Krispy Kreme said Monday in a statement. That represents a 25 percent premium over the stock’s closing price on Friday.
The deal gives JAB another piece to add to its rapidly growing coffee empire. The closely held investment firm, which manages the fortune of Austria’s billionaire Reimann family, has spent more than $30 billion in the past four years acquiring coffee companies in the U.S. and Europe to challenge global leader Nestle SA. AB Beech acquired Keurig Green Mountain. JAB Holdings purchased Einstein Noah Restaurant Group Inc. and D.E Master Blenders 1753 NV.
JAB is the investment arm of the Reimann family. The latter are the heirs to the German consumer goods conglomerate Joh. A. Benckiser. For more on family offices, see Pritzker Group and Other Wealthy Families Skip PE Firms to Invest Directly. Outside of coffee, JAB owns stakes on Coty Inc. (NYSE: COTY) and Jimmy Choo.
Krispy Kreme shares, which had risen 12 percent this year through last week, were halted while the news was announced.
--With additional reporting by Demitri Diakantonis