Krispy Kreme Doughnuts To Be Acquired By JAB Beech In $1.35 Bln Deal

(RTTNews) - Doughnut chain Krispy Kreme Doughnuts, Inc. (KKD) has agreed to be acquired by JAB Beech Inc. in a deal valued at about $1.35 billion, the two companies said Monday. JAB Beech is an indirect controlled subsidiary of JAB Holding Co., in which BDT Capital Partners is a minority investor alongside JAB.

Under the terms of the definitive merger agreement, JAB Beech will acquire Krispy Kreme for $21 per share in cash. The agreement, which has been unanimously approved by Krispy Kreme's board of directors, represents a nearly 25 percent premium over the company's closing stock price of $16.86 per share on May 6, 2016.

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

JAB Holding Company is a privately held group focused on long-term investments in companies with premium brands, attractive growth and strong margin dynamics in the consumer goods category.

The group's portfolio includes controlling stakes in Keurig Green Mountain, Jacobs Douwe Egberts (JDE) and Coty Inc., and in luxury goods companies including Jimmy Choo, Bally and Belstaff.

The transaction is not subject to a financing condition and is expected to close in the third quarter, subject to customary closing conditions, including receipt of regulatory and shareholder approvals.

Due to the announcement and pending transactions under the merger agreement, Krispy Kreme's board of directors has determined to postpone the company's 2016 annual meeting of shareholders, originally scheduled for June 14, 2016.

At a later date, the company will provide information related to a rescheduled meeting, if applicable.

Wells Fargo Securities, LLC is serving as financial advisor to Krispy Kreme in connection with this transaction, while Simpson Thacher & Bartlett LLP and Womble Carlyle Sandridge & Rice, LLP are providing legal support and advice.