Krispy Kreme is being sold to JAB Holding, a private company, for $1.35 billion. JAB is the same company that recently agreed to buy Keurig Green Mountain.
The company is being acquired by $21 a share in cash or a nearly 25% premium over Friday’s closing price.
Once the deal is completed Krispy Kreme will serve the public as a private company. It will remain headquartered in Winston-Salem, NC.
“We are thrilled to have such an iconic brand as Krispy Kreme joining the JAB portfolio,” Peter Harf, senior partner at JAB, said in a statement.
The company has been struggling over the last year. Its stock plunged to $14 in late 2015 as packaged goods — donuts sold in supermarkets, gas stations, and other locations, fell off sharply.
In spring last year, the doughnut chain was trading above $20.
The sale has led to speculation that rival Dunkin’ Donuts could also be purchased.
Potential takeover bids in the marketplace led to 2% share increases for the parent of Dunkin’ Donuts and Baskin-Robbins.