Krispy Kreme shares soar on sweet takeover offer

Associated Press

NEW YORK

Krispy Kreme shareholders got a caffeine boost after coffee giant JAB Beech said Monday it is acquiring the doughnut chain.

The Luxembourg-based investment firm, which owns Keurig Green Mountain, Peet’s Coffee & Tea and Caribou Coffee, said it is taking the North Carolina doughnut company private in a deal worth about $1.35 billion.

Krispy Kreme’s stock soared more than 24 percent in afternoon trading.

The deal comes after an affiliate of JAB Holdings recently added to its coffee empire with the acquisition of Keurig, which makes single-cup coffee machines that sit on countertops. JAB Holdings, which is owned predominantly by the Reimann family in Europe, also has stakes in Jacobs Douwe Egberts, the company behind Gevalia, Tassio and other brands.

Outside of coffee, JAB Holdings has stakes in bagel- shop operator Einstein Noah, beauty products maker Coty and high-end shoe seller Jimmy Choo.

The companies said Krispy Kreme will continue to be independently operated from its headquarters in Winston-Salem, N.C. Krispy Kreme, which was founded in 1937, has more than 1,100 shops around the world, with about 300 of those in the U.S.

Unlike its larger rival Dunkin’ Donuts, Krispy Kreme stores in the U.S. still get most of their business from doughnuts and other pastries, rather than coffee drinks and sandwiches. But Krispy Kreme has said it wants step up its beverage sales.