JAB Holding to buy Krispy Kreme Doughnuts for $1.35 bn
09 May 2016
JAB Holding Co, the investment vehicle of Germany's billionaire Reimann family, today struck a deal to buy Krispy Kreme Doughnuts Inc, for $1.35 billion.
JAB Holding will acquire Krispy Kreme through its unit JAB Beech Inc, in which BDT Capital Partners will be a minority investor.
JAB Holding is offering to pay $21 per share in cash, a premium of around 25 per cent to Krispy Kreme's closing stock price on 6 May 2016.
Post-closing, Krispy Kreme will be privately owned and will continue to be independently operated from its current headquarters in Winston-Salem, North Carolina.
Krispy Kreme is a leading branded specialty retailer and wholesaler of premium sweet treats and complementary products, including its signature Original Glazed doughnut.
Founded in 1937, Krispy Kreme operates over 1,100 outlets in more than 26 countries around the world.
Peter Harf, Senior Partner at JAB Holding, 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,'' he added.
Luxembourg-based JAB Holding focuses on investments in companies with premium brands in the consumer goods sector.
The group owns controlling stakes in Jacobs Douwe Egberts, global beauty products major Coty Inc, luxury goods makers Jimmy Choo, Bally, Belstaff, hygiene and home products giant Reckitt Benckiser among others.