The company that bought Keurig is buying Krispy Kreme in $1.35B deal

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Krispy Kreme's Billion Dollar Deal

A subsidiary of JAB Holding Company is buying Krispy Kreme Doughnuts for $21 a share, or about $1.35 billion.

The deal is expected to close in the third quarter.

JAB in December spent $13.9 billion to buy the home-brewing company Keurig Green Mountain.

It also owns Caribou Coffee and has controlling stakes in Peet's Coffee & Tea.

"This transaction puts us in the best possible position to continue to spread that joy to a growing number of people around the world while delivering significant value to Krispy Kreme shareholders," Krispy Kreme chairman Jim Morgan said in a statement.

Krispy Kreme CEO Tony Thompson told Business Insider's Kate Taylor last year that he wants to increase coffee sales, which made up only 5% of sales as of December.

Wells Fargo is advising Krispy Kreme and Barclays and BDT & Company are advising JAB.

Check out some of the most gourmet doughnuts from around the world:

32 PHOTOS
Doughnut shops across the US
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The company that bought Keurig is buying Krispy Kreme in $1.35B deal
ARIZONA- BoSa Donuts
CALIFORNIA- The Donut Man
CONNETICUT- Neil's Donuts
DELAWARE- Fractured Pruned 
INDIANA- Square Donuts
LOUISIANA- Southern Maid Donuts
MARYLAND- Glory Doughnuts
MASSACHUSETTS- Kane's Handcrafted Donuts 
MICHIGAN- Hinkley's Bakery
MINNESOTA- YoYo Donuts
MISSISSIPPI- Blue Star Donuts 
MISSOURI- Old Town Downtown

MONTANA- Granny's Gourmet Donuts

NEW JERSEY- Montclair Bread Co.
NEW MEXICO- Rebel Donut
NEW YORK- DOUGH
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JAB also owns a stake in the consumer products company Reckitt Benckiser, which owns everything from Durex to Gaviscon. It also has a luxury arm which houses investments in Jimmy Choo, Belstaff and Bally, and owns perfume maker Coty.

JAB struck a deal in 2013 to buy D.E. Master Blenders 1753, and later agreed a deal with Mondelez International to combine their respective coffee businesses. That created Jacobs Douwe Egberts, which describes itself as the biggest pure-play coffee company in the world.

Here is the press release:

WINSTON-SALEM, N.C.--(BUSINESS WIRE)--Krispy Kreme Doughnuts, Inc. (NYSE: KKD) ("Krispy Kreme" or the "Company") and JAB Beech Inc., an indirect controlled subsidiary of JAB Holding Company ("JAB") in which BDT Capital Partners is a minority investor alongside JAB, today 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.

Jim Morgan, Chairman of the Board of Directors of Krispy Kreme, commented, "For nearly 80 years, our iconic brand has been touching and enhancing lives through the joy that isKrispy Kreme. This transaction puts us in the best possible position to continue to spread that joy to a growing number of people around the world while delivering significant value to Krispy Kreme shareholders. I am confident the JAB team is the right partner with whom to continue building upon our incredible legacy."

Tony Thompson, CEO of Krispy Kreme, commented, "JAB's experience and industry knowledge make them the ideal partner to help grow the iconic Krispy Kreme brand throughout the world. We remain focused on our long term strategy and continuing to offer our premium, high-quality doughnuts and sweet treats to consumers around the world. We look forward to working with JAB to continue bringing the joy that is Krispy Kreme to a growing number of customers. Together with our talented team and our passionate franchisees, we will continue to build on the Krispy Kreme culture, values and commitment to our customers and guests."

Peter Harf, Senior Partner at JAB, commented, "We are thrilled to have such an iconic brand as Krispy Kreme joining the JAB portfolio. This is yet another example of our commitment to investing in extraordinary brands with significant growth prospects. We feel strongly that Krispy Kreme will benefit greatly from our long-term focus and support for management's vision in building on the legacy of this exciting brand as an independent standalone entity."

Click through for photos of Krispy Kreme's famous glazed doughnuts:

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Krispy Kreme
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The company that bought Keurig is buying Krispy Kreme in $1.35B deal
Krispy Kreme doughnuts go into production at the opening of the store at Harrods in London, October, 3, 2003. [The U.S. chain opened its first European outlet in London on Friday.]
Krispy Kreme doughnuts go into production at the opening of the store at Harrods in London, October, 3, 2003. The U.S. chain opened its first European outlet in London on Friday. REUTERS/ David Bebber ASA/JV
Employees tend to the assembly line as doughnuts are baked, fried, and glazed at a Krispy Kreme Doughnuts Inc. store in Farragut, Tennessee, U.S., on Wednesday, Dec. 5, 2013. The doughnut chain plans to add at least 30 new U.S. stores next year and is opening up new markets for franchising. Photographer: Luke Sharrett/Bloomberg via Getty Images
An employee picks up fresh donuts from a conveyor belt at a Krispy Kreme Doughnuts Inc. store in Farragut, Tennessee, U.S., on Wednesday, Dec. 5, 2013. The doughnut chain plans to add at least 30 new U.S. stores next year and is opening up new markets for franchising. Photographer: Luke Sharrett/Bloomberg via Getty Images
Doughnuts are displayed in a case at a Krispy Kreme Doughnuts Inc. store in Farragut, Tennessee, U.S., on Wednesday, Dec. 5, 2013. The doughnut chain plans to add at least 30 new U.S. stores next year and is opening up new markets for franchising. Photographer: Luke Sharrett/Bloomberg via Getty Images
Customers wait inside a Krispy Kreme Doughnuts store to collect on the promotion of a free doughnut to anyone with an "I Voted" sticker on election day in Washington, November 4, 2008. REUTERS/Mitch Dumke (UNITED STATES) US PRESIDENTIAL ELECTION CAMPAIGN 2008 (USA) REUTERS
MIAMI - MAY 17: Glazed Krispy Kreme doughnuts are seen May 17, 2004 in Miami, Florida. Krispy Kreme Doughnuts Inc. last week said that the low-carb diet trend has hurt sales and they now face shareholder lawsuits alleging it misled investors about the direction its business was headed. (Photo by Joe Raedle/Getty Images)
UNITED STATES - MAY 25: Customer Anthoney Golladay and his newly purchased Doughnuts at a Krispy Kreme Doughnut shop in Alexandria, Virginia, May 25, 2004. Krispy Kreme Doughnuts Inc. had its first loss as a public company after closing its Montana Mills business and doughnut-chain sales declined amid the popularity of low-carbohydrate diets. (Photo by Dennis Brack/Bloomberg via Getty Images)
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Krispy Kreme opened a Starbucks-style coffee shop — here's what it's like
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