Germany's Joh A Benckiser to acquire Peet's Coffee & Tea for $1 bn
24 Jul 2012
Germany's billionaire Reimann family's Joh A Benckiser SE, the owner of Coty Inc, the world's largest fragrance company, today agreed to acquire Peet's Coffee & Tea Inc, for about $1 billion.
The deal comes two months after Paris and New York City-based Coty withdrew its unsolicited takeover offer for Avon Products Inc, ending a 10-week struggle by the over a century-old fragrance manufacturer to buy the world's largest cosmetics direct seller, despite having sweetened its offer to $10.7 billion. (See: Coty withdraws $10.7-bn Avon bid)
Joh A Benckiser, the investment vehicle for the Reimann family, which also owns stake in household products maker Reckitt Benckiser Plc, will pay $73.50 per share in cash, representing a premium of nearly 29 per cent over Peet's 20 July closing price of $57.16.
Chicago-based merchant bank BDT Capital is an advisor in the Peet's deal and is also taking up a minority stake.
Founded in 1966 by Dutch immigrant Alfred Peet as a single store called Peet's Coffee, Tea & Spices in Berkeley, California, Peet introduced darker roasted arabica coffee, such as french roast and coffee beans to make espresso drinks in the Bay Area of San Francisco and to the US coffee retailers.
The founders of Seattle, Washington-based Starbucks coffee house used to buy their coffee beans from Peet's during their first year of business in 1971.