What: Shares of Krispy Kreme Doughnuts (NYSE:KKD) jumped more than 24% early Monday after the doughnut and coffeehouse chain announced it has entered into a definitive merger agreement with JAB Holding Company.
So what: More specifically, JAB Holding and minority investor BDT Capital Partners have entered into a merger agreement under which the companies will acquire Krispy Kreme for $21 per share in cash. That gives Krispy Kreme a total equity value of $1.35 billion, and represents a roughly 25% premium to Friday's closing price.
"For nearly 80 years, our iconic brand has been touching and enhancing lives through the joy that is Krispy Kreme," added Jim Morgan, Krispy Kreme chairman of the board. "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."
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