Krispy Kreme’s doughnut chain is cashing in for $1.35 billion after being acquired by a private company on Monday.
JAB Holding, which also owns Keurig and Peet’s Coffee & Tea, agreed to buy Krispy Kreme (KKD) for $21 a share in cash. According to CNN Money, that is approximately 25% more than Krispy Kreme’s closing price on Friday of $16.86.
Peter Harf, senior partner at JAB, released a statement regarding the acquisition:
“We are thrilled to have such an iconic brand as Krispy Kreme joining the JAB portfolio.”
Krispy Kreme will become a private company, but its headquarters will remain in Winston-Salem, North Carolina, where it was founded.
The popular chain, famous for their original glazed doughnuts, first opened its doors in 1937. Its founder, Vernon Rudolph, began selling his sweet desserts to local grocery stores before opening shop. In 2015, Krispy Kreme added a new location in Kansas City, bringing the grand total of shops to 1,000.
Krispy Kreme has become a household name over the years with its stock value reaching a high of $49.37 in August 2003. The chain has more stores overseas than in the U.S., although international franchise store sales have been declining. Sales of Krispy Kreme packaged doughnuts in supermarkets have also been weak. Krispy Kreme stock dropped to under $14 near the end of last year.