Krispy Kreme Doughnuts Inc. said Monday it has agreed to be acquired by JAB Beech for $21 a share in cash, in a deal with an equity value of about $1.35 billion. The price is equal to a premium of 25% over Krispy Kreme’s closing stock price on Friday, the company said in a statement. JAB focuses on long-term investments in premium brands, and owns stakes in retail coffee companies, including Keurig Green Mountain, Jacobs Douwe Egberts and Peet’s Coffe & Tea. The deal is expected to close in the third quarter, after which Krispy Kreme will be privately owned but continue to operate from its headquarters in Winston-Salem, N.C. The stock was halted in premarket trade ahead of the announcement, but is up about 12% in the year so far, while the S&P 500 has gained 0.7%.
Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.
From:: Stock Market News