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Krispy Kreme Going Private: To Be Acquired By JAB Beech For $21/Share In Cash

Krispy Kreme Doughnuts, Inc. NYSE:KKD - Krispy Kreme Going Private: To Be Acquired By JAB Beech For $21/Share In Cash

Krispy Kreme Doughnuts KKD 24.02% and JAB Beech Inc. revealed they have struck a definitive merger deal. Accordingly, the latter will acquire the former for $21 a share in cash for a total value of about $1.35 billion. The offer price carries at 25 percent premium over Friday's closing price.

According to the press release, "The transaction is not subject to a financing condition and is expected to close in the third quarter, subject to customary closing conditions, including receipt of regulatory and shareholder approvals."

Additionally, following the announcements of the merger, Krispy Kreme board decided to postpone the company's 2016 Annual Meeting of Shareholders, which was slated for June 14. Further information regarding a rescheduled meeting will be provided at a later date.

Related Link: Dunkin' Brands Shares Rise Almost 1% To $46.55 Following Krispy Kreme Going Private

Krispy Kreme Chairman Jim Morgan said, "For nearly 80 years, our iconic brand has been touching and enhancing lives through the joy that is Krispy Kreme. 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. I am confident the JAB team is the right partner with whom to continue building upon our incredible legacy."

The company's CEO Tony Thompson commented, "JAB's experience and industry knowledge make them the ideal partner to help grow the iconic Krispy Kreme brand throughout the world. We remain focused on our long term strategy and continuing to offer our premium, high-quality doughnuts and sweet treats to consumers around the world. 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."

At time of writing, Krispy Kreme was trading up 24.30 percent at $20.97.

© 2016 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.