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Krispy Kreme Looks to Rival Starbucks, Dunkin', Cramer Says

Updated with additional details from Krispy Kreme spokesman and comments from Jim Cramer.

Krispy Kreme's (KKD - Get Report) CEO wasn't kidding around when he told TheStreet last December he viewed coffee beverages as a major opportunity for the iconic donut chain.

The 79-year-old glazed donut seller announced Monday it will be acquired by JAB Holding Company for $21 per share in cash, or a total value of approximately $1.35 billion. The agreement represents a premium of approximately 25% over Krispy Kreme's closing price on May 6.

Internationally based JAB, a private company that plunked down $13.9 billion last year to purchase coffee pod maker Keurig Green Mountain, also owns Peet's Coffee & Tea and Caribou Coffee. The company has controlling stakes in Jacobs Douwe Egberts as well, a coffee and tea giant that owns Gevalia, among other brands.

Must Read: Jim Cramer Says Starbucks Won't be Hurt by Krispy Kreme Donut Deal

According to a Krispy Kreme spokesman, talks between the two companies began late last year. It does not expect any leadership changes, said the spokesman.

"JAB is really putting together an amazing conglomerate. They want to own the morning," said Jim Cramer, TheStreet's founder. "I think JAB has a balance sheet that could make Krispy Kreme a formidable competitor" to Starbucks (SBUX...