Peet's Coffee & Tea to acquire Diedrich Coffee
November 3, 2009
by Allison Sebolt
— Peet’s Coffee & Tea, Inc. has announced it will acquire Diedrich Coffee, Inc. through a cash-and-stock transaction valued at $26 per share for a total value of $213 million.
“Consistent with our vision to be the gold standard specialty coffee company with leading premium quality brands in every segment of the category, we recently launched a line of premium Godiva coffees in the medium roast and flavored segments with excellent sell-in success,” said Patrick O’Dea, president and chief executive officer. “The Diedrich acquisition represents another major strategic growth initiative for our consumer packaged coffee business by entering and driving adoption of the single cup segment through Diedrich’s high-growth K-Cup business.”
Diedrich’s is almost exclusively focused on production of K-Cups for Keurig Inc.’s single-cup brewing system. As a part of the transaction, Peet’s will acquire Diedrich’s portfolio of brands, including Diedrich Coffee, Coffee People and the single-serve rights to the nationally recognized Gloria Jean’s coffee brand. Peet’s also will acquire Diedrich’s roasting and packaging facility.
“Together, Diedrich and Peet’s will create new growth opportunities for Diedrich’s brands and drive household penetration of the K-Cup market,” said Paul Heeschen, chairman of Diedrich. “As a result, this combination benefits shareholders of both companies, customers and employees, and our K-Cup business partners. Our already strong K-Cup business will accelerate under Peet’s in a way we could not achieve alone.”
The transaction is expected to close by the end of the year.