From Coffee to Donuts: Keurig and Peet’s Owner Buys Krispy Kreme


Krispy Kreme doughnuts

The Reimann family really likes their coffee. The people behind the JAB Holding Company—the Germany-based investment empire that already owns Keurig Green Mountain, Peet’s Coffee & Tea, Stumptown, Caribou and Intelligentsia coffee brands—are adding Krispy Kreme Doughnuts to the company’s coffee portfolio for a purchase price of about $1.35 billion.

The privately-held (and relatively quiet) group specializes in long-term investments in premium brands in the luxury goods, coffee and healthcare sectors. Krispy Kreme has mounted its own coffee push in recent years as its calorie-laden, delicious doughnuts proved to be a tougher sell in a more nutrition-conscious age.

Now, Krispy Kreme will find strength in numbers as part of JAB, which bought Keurig for $13.9 billion in December and now will pay Krispy Kreme investors a 25 percent premium for their shares, or $21 each in cash, according to the Charlotte Observer.

Krispy Kreme truck

“We are thrilled to have such an iconic brand as Krispy Kreme joining the JAB portfolio,” said JAB senior partner Peter Harf in a statement. “This is yet another example of our commitment to investing in extraordinary brands with significant growth prospects.”

JAB has spent more than $30 billion in the past four years acquiring coffee companies in the US and Europe to challenge Nestle for java global supremacy.

It also owns controlling stakes in Jacobs Douwe Egberts, Caribou Coffee, Einstein Noah Restaurant Group, Espresso House and Baresso Coffee, as well as non-coffee holdings including Jimmy Choo shoes and Coty fragrances.

Krispy Kreme plans to maintain its headquarters in Winston-Salem, NC, after the purchase.

JAB’s recent acquisition spree highlights a thirst for coffee:

June 2, 2015: Acquires Nordic coffee shop chain Espresso House

June 22, 2015: Acquires Danish coffee chain Baresso

Oct. 6, 2015: Acquires Stumptown

Oct. 19, 2015: Coty closes acquisition of Beamly for digital and social marketing

Oct. 30, 2015: Acquires Intelligentsia Coffee

Feb. 1, 2016: Coty closes acquisition of Hypermarcas (Brazil) beauty business

Mar. 3, 2016: Keurig Green Mountain acquisition closed

May 9, 2016: Krispy Kreme Doughnuts, Inc. announced

Oct. 2016: Expected closing date for Coty‘s acquisition of P&G’s beauty brands