Krispy Kreme, the popular North Carolina-based doughnut chain, has been acquired by JAB Holding Company for $1.35 billion.
The sale to JAB — which also owns several other coffee brands including Keurig Green Mountain, Caribou Coffee, Peet’s Coffee & Tea, Stumptown Roasters, and the Einstein Noah Restaurant Group — will allow Krispy Kreme to continue to operate independently.
In recent years, Krispy Kreme has battled decline by taking on Starbucks and Dunkin’ Donuts with the launch of a cozy coffee shop concept, with the goal of making sure that customers “are coming for the doughnut,” and staying for the coffee.
“For nearly 80 years, our iconic brand has been touching and enhancing lives through the joy that is Krispy Kreme,” Krispy Kreme chairman Jim Morgan said in a statement. “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 for Krispy Kreme shareholders.”
The deal will turn Krispy Kreme, which went public in 2000, into a privately-owned enterprise.
“We are thrilled to have such an iconic brand as Krispy Kreme joining the JAB portfolio,” Peter Harf, a senior partner at JAB, said in a statement. “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 on support for management’s vision in building on the legacy of this exciting brand as an independent stand-alone entity.”