JAB Beech Inc. to Acquire Krispy Kreme for $1.35 Billion

by Katie Sloan

Winston-Salem, N.C. — Jab Beech Inc. and Krispy Kreme Doughnuts Inc. have entered into a definitive merger agreement under which JAB 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 percent 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.

Wells Fargo Securities LLC is serving as financial advisor to Krispy Kreme in connection with this transaction, and Simpson Thacher & Bartlett LLP and Womble Carlyle Sandridge & Rice LLP are providing legal support and advice. Barclays and BDT & Company LLC are serving as financial advisors to JAB Beech in connection with this transaction, and Skadden, Arps, Slate, Meagher & Flom LLP is providing legal advice.

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