Mmm: Krispy Kreme share price rockets on news of $1.35bn takeover
The share price of Krispy Kreme Doughtnuts rocketed on Monday after the company treated investors to news of a takeover.
JAB Beech has agreed to acquire Krispy Kreme for approximately $1.35bn (£936m), or $21 per share in cash.
JAB is currently best known for its coffee businesses, including Keurig Green Mountain, which it acquired $13.9bn last year.
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Kirspy Kreme said the offer had been unanimously approved by its board and represented a premium of around 25 per cent over Friday's closing share price.
On Monday morning in the US, Krispy Kreme's share price was up around 24 per cent to $20.92.
Jim Morgan, chairman of the board of directors of Krispy Kreme, said: “This transaction puts us in the best possible position to continue to spread [the] 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.”
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Peter Harf, senior partner at JAB, said: “We are thrilled to have such an iconic brand as Krispy Kreme joining the JAB portfolio. This is yet another example of our commitment to investing in extraordinary brands with significant growth prospects.
"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.”