Food Business News - May 17, 2016 - (Page 16)

JAB to acquire Krispy Kreme for $1.35 billion WINSTON-SALEM, N.C. - JAB Holding Co. has reached agreement to acquire Krispy Kreme Doughnuts, Inc. for $21 per share in cash, or approximately $1.35 billion. The agreement was approved by the board of directors of Krispy Kreme and represents a premium of approximately 25% over the company's closing stock price of $16.86 on May 6. Following the transaction, Krispy Kreme will be privately owned and will continue to be independently operated from its current headquarters in WinstonSalem. "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," said Jim Morgan, chairman of the board of Krispy Kreme. "I am confident the JAB team is the right partner with whom to continue building upon our incredible legacy." Tony Thompson, chief executive officer of Krispy Kreme, said JAB's experience and industry knowledge make it "the ideal partner" to help grow the Krispy Kreme brand throughout the world. "We remain focused on our long-term strategy and continuing to offer our premium, high-quality donuts and sweet treats to consumers around the world," Mr. Thompson said. "We look forward to working with JAB to continue bringing the joy that is Krispy Kreme to a growing number of customers. Together with our talented team and our passionate franchisees, we will continue to build on the Krispy Kreme culture, values and commitment to our customers and guests." This is the second major acquisition for JAB Holding this year. Earlier, the company paid $92 per share, or nearly $14 billion, for Keurig Green Mountain, Inc. JAB Holding also holds controlling stakes in Jacobs Douwe Egberts, the combined coffee businesses of Mondelez International, Inc. and D.E Master Blenders 1753 B.V.; Peet's Coffee & Tea, a specialty coffee and tea company; Caribou Coffee Co., a retailer of premium coffee products; and Einstein Noah Restaurant Group, Inc., an operator of quickservice bagel shops. "We are thrilled to have such an iconic brand as Krispy Kreme joining the JAB portfolio," said Peter Harf, senior partner at JAB. "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." The transaction is expected to close in the third quarter, subject to customary closing conditions, including receipt of regulatory and shareholder approvals. In light of the announcement and pending transactions under the merger agreement, Krispy Kreme's board of directors has decided to postpone the company's 2016 annual meeting of shareholders, which originally was scheduled for June 14. For the fiscal year ended Jan. 31, Krispy Kreme net income was $32,398,000, equal to 50c per share on the common stock, up nearly 8% from net income of $30,060,000, or 45c per share, for fiscal 2015. Revenues for the year increased nearly 6% to $518,714,000 from $490,334,000. FBN JAB Holding Co. (Timeline of acquisitions, joint ventures) 2016 Krispy Kreme Doughnuts, Inc. Keurig Green Mountain, Inc. 2015 Stumptown Coffee Roasters Jacobs Douwe Egberts, the combined coffee businesses of Mondelez International, Inc. and D.E Master Blenders 1753 Intelligentsia Coffee & Tea Baresso Coffee 16 FOODBUSINESS NEWS ® Espresso House 2014 Einstein Noah Restaurant Group, Inc. 2013 D.E Master Blenders 1753 2012 Caribou Coffee Co. Mighty Leaf Tea Peet's Coffee & Tea, Inc. May 17, 2016

Table of Contents for the Digital Edition of Food Business News - May 17, 2016

Food Business News - May 17, 2016
Dean Foods diversifying with Friendly’s acquisition
Nutrition point of reference
Dairy Business News - Hydrocolloids – It’s all about the gel
Table of Contents
Web Contents
Editorial - Investors view food production as ripe for disruption
F.D.A. adjusts course on ‘healthy’ labeling
Doug Gillespie to lead Harvest Hill Beverage Co.
Bunge launches non-G.M.O. corn product line
JAB to acquire Krispy Kreme for $1.35 billion
CAVU Venture Partners: Building and creating winners
Hain Celestial begins restructuring effort
Hain learns tough lesson with tea revamp
Pilgrim’s Pride to enter organic chicken category
Green Giant brings giant boost to B&G Foods
Cott making leadership changes in North America and U.K.
Market Insight - Where’s the sugar?
Ingredient Trends - Flavor innovation energizes sports nutrition category
Ingredient Innovations - Ancient grains rising in product development
New Food Products
Ingredient Market Trends - U.S.D.A. issues unexpectedly bullish outlook for soybeans
Ingredient Markets
Supplier Innovations and News
Ad Index
Food Business in the News

Food Business News - May 17, 2016