Krispy Kreme secures $1.35bn takeover

US doughnut business Krispy Kreme has agreed to be acquired by JAB Holding Company in a deal worth $1.35bn.

Under the agreement, JAB Beech, an indirect subsidiary of JAB Holding, will buy the doughnut maker for $21 per share.

The deal represents a premium of around 25% over the company’s closing stock price on 6 May and is expected to close in the third quarter, after which Krispy Kreme will be privately owned.

Founded in 1937, Krispy Kreme operates over 1,100 shops in more than 26 countries globally, while JAB owns controlling stakes in coffee company Jacobs Douwe Egberts (JDE) and single-serve coffee and beverage technology business Keurig Green Mountain.

“JAB’s experience and industry knowledge make them the ideal partner to help grow the iconic Krispy Kreme brand throughout the world,” says Krispy Kreme CEO Tony Thompson. “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.”

Peter Harf, senior partner at JAB, adds, “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.”