JAB, making its second big U.S. acquisition in just over two months, has ambitions to build a global coffee powerhouse to rival market leader Nestle SA.
The company, which led the $13.9 billion buyout of K-cup maker Keurig Green Mountain in March, already owns the Caribou Coffee and Peet’s Coffee & Tea chains in the United States.
Luxembourg-based JAB took a big step forward in its coffee strategy last year when it formed a joint venture in Europe called Jacobs Douwe Egberts by combining its D.E. Master Blenders 1753 business with the coffee business of U.S.-based Mondelez International Inc.
The business is now the world’s largest pure-play coffee company by volume.
JAB, the investment vehicle of the billionaire Reimann family, said on Monday it would buy Krispy Kreme through JAB Beech Inc, in which U.S. private equity firm BDT Capital Partners is a minority investor.
Krispy Kreme, known for its glazed and jelly-filled doughnuts as well as coffee, had 1,121 stores worldwide as of January, of which 824 were outside the United States.
The company sells its ready-to-drink and bagged coffee and K-cup coffee pods for Keurig machines through retailers.
Krispy Kreme’s shares jumped 24.4 percent to $20.98 on Monday, just shy of the offer of $21 per share.
Cosmetics company Coty Inc and luxury goods maker Jimmy Choo are among the other companies controlled by JAB.
Krispy Kreme said it would continue to operate independently after the close of the deal, expected in the third quarter, and its headquarters would stay in Winston-Salem, North Carolina.
Wells Fargo Securities LLC is the U.S. company’s financial adviser, while Barclays and BDT & Co LLC are advising JAB Beech.
Simpson Thacher & Bartlett LLP and Womble Carlyle Sandridge & Rice LLP are Krispy Kreme’s legal advisers. Skadden, Arps, Slate, Meagher & Flom LLP is legal counsel to JAB Beech.
By Sruthi Ramakrishnan
Carlsberg has announced the departure of its chief financial officer (CFO), Heine Dalsgaard, after six years in the position. In a statement, Carlsberg said that Dalsgaard was resigning from the post to take up the role of CFO at a private equity-backed company in a different industry.
Kellogg will split into three independent companies to focus on the snack business, Reuters reported Tuesday. The snacking portfolio will comprise the main business, while the North America cereal unit and the plant-based business will be spun off. The company is also considering a sale of the plant-based business.
The snacks giant says the acquisition will help build on its commitment to “lead the future of snacking” in key geographies worldwide. Once the transaction is completed, Mondelēz will continue to operate the Clif Bar business from its headquarters in Emeryville, California. The snack giant will also continue to manufacture Clif Bars’ products, which include Clif Bar, Luna and Clif Kid, at its facilities in Idaho and Indiana.