Starbucks Coffee Co. (Nasdaq: SBUX) has agreed to acquire Teavana Holdings Inc. (NYSE: TEA), a company that sells tea, for $620 million.
Starbucks, based in Seattle, sells coffee. Teavana, headquartered in Atlanta, sells more than 100 kinds of loose-leaf tea through more than 300 stores. Teavana provides its customers with “teaologists” to educate them about tea.
“The acquisition of Teavana supports our growth strategy to innovate with new products, enter new categories, and expand into new channels of distribution,” said Jeff Hansberry, president of channel development and emerging brands for Starbucks.
Cravath Swaine & Moore LLP represented Starbucks for the transaction.
Harwood Feffer LLP announced that it is investigating potential claims against Teavana's board of directors, based on target prices from analysts that are higher than Starbucks' proposed $15.50 per share.