NY Times: A German billionaire family has been on a breakfast buying binge. The newest item on its plate: doughnuts. The board of Krispy Kreme, best known for its warm glazed doughnuts, agreed to the company’s acquisition by JAB Holding Company and a minority investor, BDT Capital Partners, for $1.35 billion, it announced on Monday. JAB is the investment arm of the Reimann family, the heirs to the German consumer goods conglomerate Joh. A. Benckiser.
In recent years, JAB has acquired the parent company of Einstein Brothers Bagels, as well as Peet’s Coffee & Tea, Stumptown Coffee Roasters and Caribou Coffee. In December, JAB acquired Keurig Green Mountain for $13.9 billion, its biggest bet yet in building its coffee empire.
Coffee also happens to be the key ingredient in JAB’s other recent acquisitions. JAB’s portfolio makes it the “near-ideal candidate” to control Krispy Kreme, Will Slabaugh, an analyst at Stephens, said in a research note on Monday. JAB would be able to improve Krispy Kreme’s operations, add food and beverage options, and help it expand nationally and internationally, he said.
Peter Harf, senior partner at JAB, said in the statement, “We are thrilled to have such an iconic brand as Krispy Kreme joining the JAB portfolio.”
Major major news out of the sweet treats world today. Just when you thought Krispy Kreme was dead and buried, they are given new life and 1.35 BILLION dollars. Helluva day for the best glazed donut in all the land. At first I thought this was bad news, finding out that Krispy Kreme was selling and/or being absorbed and thus closing up shop. Nope. Krispy Kreme is more alive now than ever. The future is bright for JAB Holding and Krispy Kreme.
$1.35B is a bargain by the way. I’m pretty sure the donut industry is approximately a $400 kajillion business. This dollar amount is peanuts to what it can be worth in 10, 20, 50 years. JAB just purchased Keurig Green Mountain a few months ago too. No big deal. Just locking up coffee and donut powerhouses left and right. I fail to see any potential there with those new mergers.
We need a new line of munchkins and croissant donuts PRONTO. Also they need to triple their brick and mortar locations. You have not lived until you’ve had a Krispy Kreme donut hot and fresh off the conveyor belt. Every time I even see a Krispy Kreme logo I need somebody to hold me. Those donuts are outrageous. Not that they ever left, but Krispy Kreme is back.
PS – Glazed Krispy Kreme or get the fuck out. I wouldn’t be mad if they cut every donut off the menu besides the only one that matters.