FRANKFURT (REUTERS) - Krispy Kreme Doughnuts Inc will be taken private by JAB Holding Co for about US$1.35 billion (S$1.83 billion), the second buyout of a United States food company by the German investment firm in just over two months.
Krispy Kreme shares rose nearly 24 per cent to US$20.84 in premarket trading on Monday, just below the offer price of US$21 per share in cash.
JAB Holding will acquire Krispy Kreme through its unit JAB Beech Inc, in which BDT Capital Partners is a minority investor.
JAB Holding, the investment vehicle of Germany's billionaire Reimann family, led a buyout of K-cup coffee pod maker Keurig Green Mountain Inc in March for US$13.9 billion.
Cosmetics company Coty Inc and luxury goods maker Jimmy Choo are among the other U.S. companies in which the German company has controlling stakes.
The Krispy Kreme deal, which has no financing conditions, is expected to close in the third quarter.
Wells Fargo Securities LLC is the U.S. company's financial adviser for the deal, while Barclays and BDT & Co LLC are advising JAB Beech.
Simpson Thacher & Bartlett LLP and Womble Carlyle Sandridge & Rice LLP are Krispy Kreme's legal advisers and Skadden, Arps, Slate, Meagher & Flom LLP is JAB Beech's legal counsel.