The company that owns Keurig, Peet’s Coffee and Caribou Coffee is now buying Krispy Kreme.
Insert your own Homer Simpson joke here.
JAB Holdings will pay $1.35 billion ($21 per share) for Krispy Kreme, which will continue to operate independently and retain its Winston-Salem, NC headquarters.
Krispy Kreme started in the 1930’s in Nashville and began to expand outside the Southeast in the 1990’s. The company took off like a shot after going public in 2000 with the stock hitting an all-time high of $50 in August 2003. Then the wheels fell off. By 2005, Krispy Kreme had lost nearly 80% of its value due to market saturation; suspect accounting practices and, honestly, a cooling of the buzziness that surrounded the chain as it expanded into virgin territory.
Nobody loves Krispy Kreme more than me… except maybe my wife, who when pregnant insisted we drive halfway across town to catch a lit “Hot Doughnuts Now” sign. But I’m going to take a wait-and-see attitude on this deal. There are certainly plenty of opportunities for caffeine-and-calories synergy among JAB Holding’s assets. But whether this deal yields big dough or a big Doh! is an open question.
See what I did there?