German Firm Brews Up Deal for Peet’s Coffee

Banking, finance, and taxes

Published: July 23, 2012 9:58 am

Last Updated: July 23, 2012 10:00 am

German holding company Joh. A. Benckiser (JAB) has agreed to acquire Peet’s Coffee & Tea Co. (NASDAQ: PEET) for $73.50 per share, or approximately $1 billion in cash. The price reflects a premium of 29% to Peet’s closing price of last Friday.

JAB owns approximately 81% of Coty Inc., which filed for an IPO at the end of June after failing in an acquisition bid for Avon Products Inc. (NYSE: AVP). Coty’s offer for Avon topped $10.5 billion, but Avon was never interested in discussing a deal.

According to today’s announcement:

The transaction, which is structured as a one-step merger with Peet’s as the surviving corporation, is not subject to a financing condition and is expected to close in approximately three months, subject to customary closing conditions, including receipt of shareholder and regulatory approvals. The transaction requires the affirmative vote of holders of a majority of the company’s outstanding shares, which will be sought at a special meeting of shareholders.

Peet’s, based in Emeryville, Calif., went public in 2001 and shares hit an all-time high of more than $77 earlier this year.

Shares are trading up 29.1% at $73.81 in a 52-week range of $51.16 to $77.60.

Paul Ausick

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