Krispy Kreme announced this morning that it has agreed to be acquired by investment group JAB Beech in a deal that has an equity value of $1.35 billion.
According to the announcement, "JAB focuses on long-term investments in premium brands, and owns stakes in retail coffee companies, including Keurig Green Mountain, Jacobs Douwe Egberts and Peet's Coffee & Tea. The deal is expected to close in the third quarter, after which Krispy Kreme will be privately owned but continue to operate from its headquarters in Winston-Salem, N.C."
According to the announcement, "JAB focuses on long-term investments in premium brands, and owns stakes in retail coffee companies, including Keurig Green Mountain, Jacobs Douwe Egberts and Peet's Coffee & Tea. The deal is expected to close in the third quarter, after which Krispy Kreme will be privately owned but continue to operate from its headquarters in Winston-Salem, N.C."
- KC's View:
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Krispy Kreme was for many years the poster child for companies where management breathed its own exhaust ... they were so focused on growing that they forgot about what made the brand special ... Krispy Kreme doughnuts became almost ubiquitous, but they didn't taste so good, and so the company faced significant problems. (The low-carb fad and financial issues didn't help.)
I hope that the new ownership doesn't make the same mistake. Krispy Kreme seems to have come back a bit, and the resurgence has to be nurtured, not exploited.
