German conglomerate Joh A Benckiser (JAB) has agreed to buy US specialty coffee and tea company Peet’s Coffee & Tea Inc (NASDAQ:PEET) for a cash consideration of USD1bn (EUR827m), the parties said in a joint statement today.
The investment group is offering USD73.50 a share for the California-based company, or a premium of some 29% on its closing price on Friday.
The deal, to be carried out as a one-step merger, will likely close over the next three months. The acquisition is now subject to approval by shareholders and regulators and is also contingent on other standard closing conditions.
Under the terms of the agreement, which have already been cleared by Peet’s board, the target company will retain its management team and personnel, as well as its Emeryville head office and roast-to-order facility in Alameda.
Chicago-based merchant bank BDT Capital has also joined the transaction as an advisor and minority investor, the parties added.
Peet’s is receiving advice from Citigroup (NYSE:C) and Cooley LLP in relation to the acquisition. The buyer is being counselled by Skadden, Arps, Slate, Meagher & Flom LLP, Morgan Stanley & Co LLC and BDT & Company.
Peet’s is a specialty coffee roaster and marketer of roasted coffee and tea. The company sells its coffee and tea products via grocery stores, home delivery, office, restaurant and foodservice accounts and, in six states, through company-owned and operated stores.