Douwe Egberts owner gobbles up Krispy Kreme to add to coffee stable

Iconinc US doughnut maker Krispy Kreme has agreed to a $1.35bn takeover by JAB Beech, the powerful investment company owned by Germany’s reclusive Reimann family that already owns brands ranging from Douwe Egberts to Jimmy Choo.

Directors of the Salem, North Carolina-headquartered company have unanimously approved a merger agreement under which JAB Beech will acquire Krispy Kreme for $21 per share in cash.

The price represents a premium of approximately 25% over Krispy Kreme's stock price on Friday.

Krispy chairman Jim Morgan said: “For nearly 80 years, our iconic brand has been touching and enhancing lives through the joy that is Krispy Kreme. 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.”

Run by a trio of senior partners than includes former Reckitt Beckiser driving force Peter Harf, JAB will add Krispy Kreme to a stable of investments that includes a group of food investments such as Einstein Bros, Jacobs Douwe Egberts and December's $13.9bn acquisition of Keurig Green Mountain, plus a fashion stable that includes Bally and majority stakes in Coty and Jimmy Choo.

Harf 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.”