News

Krispy Kreme going private

May 9, 2016

Krispy Kreme Doughnuts is going private, according to a company announcement. JAB Beech, which also has controlling stakes in Keurig Green Mountain, Jacobs Douwe Egberts, Coty Inc, Jimmy Choo, Bally and Belstaff, Peet's Coffee & Tea, Caribou Coffee Company, and Einstein Noah Restaurant Group, has acquired the 80-year-old brand for $21 per share in cash.

The total equity value of the deal, which was unanimously approved by Krispy Kreme's Board of Directors and is expected to be confirmed in the third quarter of this year, comes in at approximately $1.35 billion. That price is a premium of approximately 25 percent over Krispy Kreme's Friday closing stock price.

"For nearly 80 years, our iconic brand has been touching and enhancing lives through the joy that is Krispy Kreme," said Jim Morgan, chairman of the Krispy Kreme Board of Directors. "This transaction puts us in the best possible position to continue to spread that joy to a growing number of people around the world while delivering significant value to Krispy Kreme shareholders. I am confident the JAB team is the right partner with whom to continue building upon our incredible legacy."

At the close of the transaction, Krispy Kreme will be privately owned but will continue to be independently operated from its current headquarters in Winston-Salem, North Carolina.

"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," said Krispy Kreme CEO Tony Thompson. "Together with our talented team and our passionate franchisees, we will continue to build on the Krispy Kreme culture, values and commitment to our customers and guests."

JAB Senior Partner Peter Harf said the iconic doughnut brand has significant growth prospects, particularly as an independent entity.

As a result of the announcement, the company's 2016 annual shareholders meeting — scheduled for June 14 — is being postponed with a later date to be announced if applicable.