Monday, November 02, 2009 6:44:53 PM
Mon Nov 2, 2009 6:36pm EST
Email | Print |
Share
| Reprints | Single Page
[-] Text [+]
Market News
Stocks end higher on factory, housing data | Video
Oil gains, dollar falls after strong data
Oil rises on U.S., China manufacturing data | Video
More Business & Investing News...
* Says deal values Diedrich at $26/shr
* Says deal to enter single-cup coffee mkt
* Deal to help earnings after 2010
* Peet's shares fall 4 pct, Diedrich stock up 23 pct
Nov 2 (Reuters) - Gourmet coffee chain Peet's Coffee & Tea Inc (PEET.O) agreed to buy Diedrich Coffee Inc (DDRX.O) in a $212 million cash-and-stock deal, to enter the fast growing single-cup coffee market.
The deal values Diedrich at $26 a share, a premium of 28 percent over its Monday closing price of $20.36.
Diedrich, a wholesale coffee roaster and distributor, makes and sells K-Cup refills for Green Mountain Coffee Roasters Inc's (GMCR.O) single-cup Keurig brewer system through a licensing agreement.
Under the deal, Peet's will acquire Diedrich's portfolio of brands including Diedrich Coffee, Coffee People and the single-serve rights to the Gloria Jean's coffee brand.
Peet's said it will finance the acquisition through a combination of cash on hand and $140 million of debt financing.
The acquisition, expected to hurt earnings in 2010 and add to profit thereafter, is scheduled to close by the end of 2009.
Shares of Peet's were down 4 percent at $33.18, while those of Diedrich were up 23 percent at $25.14 in trading after the bell. (Reporting by Nivedita Bhattacharjee in Bangalore; Editing by Anne Pallivathuckal)
NanoViricides Reports that the Phase I NV-387 Clinical Trial is Completed Successfully and Data Lock is Expected Soon • NNVC • May 2, 2024 10:07 AM
ILUS Files Form 10-K and Provides Shareholder Update • ILUS • May 2, 2024 8:52 AM
Avant Technologies Names New CEO Following Acquisition of Healthcare Technology and Data Integration Firm • AVAI • May 2, 2024 8:00 AM
Bantec Engaged in a Letter of Intent to Acquire a Small New Jersey Based Manufacturing Company • BANT • May 1, 2024 10:00 AM
Cannabix Technologies to Deliver Breath Logix Alcohol Screening Device to Australia • BLO • Apr 30, 2024 8:53 AM
Hydromer, Inc. Reports Preliminary Unaudited Financial Results for First Quarter 2024 • HYDI • Apr 29, 2024 9:10 AM