US speciality coffee roaster and retailer Starbucks Corporation (NASDAQ:SBUX) said it had completed the acquisition of specialty tea retailer Teavana Holdings Inc (NYSE:TEA) for USD620m (EUR467.2m) in cash, or USD15.50 per share.
The transaction, which was agreed in the middle of November, serves Starbucks’ growth strategy to introduce new products, enter new categories and use new channels of distribution. It is also in line with its commitment to continue to grow its existing Tazo tea business, the buyer said previously.
Teavana, which was founded in 1997, currently has 300 mall-based stores that sell more than 100 varieties of loose-leaf teas, authentic artisan teawares and other tea-related merchandise. When announcing the deal, Starbucks unveiled plans to expand the tea retailer’s footprint by adding new neighbourhood locations in markets across North America and around the world.
The acquisition is seen to enhance the buyer’s earnings by USD0.01 per share in fiscal 2013.