Krispy Kreme, known for their glaze dripping doughnuts, announced on Monday that they are selling the company to Germany’s JAB Holding for $1.35 billion, and if the name sounds familiar, there is a reason why.
JAB Holding is the investment arm of Germany’s billionaire Reimann family, who also recently purchased a number of iconic American coffee companies, including Pete’s Coffee & Tea, Caribou Coffee, and most recently Keurig, Einstein Brothers Bagels are also owned by JAB.
Krispy Kreme has struggled to fight off stiff competition from Dunkin’ Donuts and even Starbucks, and JAB feels they can bring life back into the doughnut and coffee chain, paying a premium of more than 25 percent from last Friday’s stock closing price.
“We are thrilled to have such an iconic brand as Krispy Kreme joining the JAB portfolio,” Peter Harf, Senior Partner at JAB, commented on the sale. “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.”
As for the fate of Krispy Kreme’s American headquarters, JAB plans to keep the company operating out of its current North Carolina home.
