Time to lever up the balance sheet and make a few PE guys rich-er.
Krispy Kreme donuts is going private, acquired by JAB Beech for $21.
Via Briefing:
If you enjoy the content at iBankCoin, please follow us on TwitterThe co and JAB Beech Inc., an indirect controlled subsidiary of JAB Holding Company in which BDT Capital Partners is a minority investor alongside JAB, announced that the companies have entered into a definitive merger agreement under which JAB Beech will acquire Krispy Kreme for $21 per share in cash, or a total equity value of approximately $1.35 billion. The agreement, which has been unanimously approved by Krispy Kreme’s Board of Directors, represents a premium of approximately 25% over the Company’s closing stock price on May 6, 2016.
At the close of the transaction, Krispy Kreme will be privately owned and will continue to be independently operated from Krispy Kreme’s current headquarters in Winston-Salem, N.C.
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.
They went public in 98-99 ? Something like that. All the rage then. Seems like yesterday.
This one looks like a strategic acquisition, not a Gordon Gekko deal.
By coincidence, buyout price per share is exactly the same as the IPO price was in 2000.
In 2009, shares dropped to a little more than $1.00 at one point.