Shares in Caribou Coffee Company (NASDAQ:CBOU) soared Monday after it announced it will be taken private by Joh. A. Benckiser (JAB) in a $340 millon deal.
The cofeehouse operator said the $16 per share cash deal, which has been unanimously approved by its board, represents a 30 per cent premium to Caribou's closing stock price on Friday.
Caribou will remain based in Minneapolis, Minnesota, and will continue to operate as an independant company with its own brand and management team.
“We anticipate the next chapter in Caribou’s journey will be filled with tremendous opportunities to grow this great brand, with new ownership,” said president and CEO Michael Tattersfield.
The deal is subject to various conditions, including majority Caribou shareholder approvals, and other customary conditions.
“Caribou has a fantastic brand and unique culture, and fits perfectly with JAB’s investment philosophy of investing in premium and unique brands in attractive growth categories like coffee,” said chairman of JAB, Bart Becht. “JAB is committed to investing in Caribou as a standalone business out of Minneapolis to ensure the company continues its current highly successful track record.”
BDT Capital Partners, a Chicago-based merchant bank that provides long-term private capital to closely held companies, will be a minority investor in the transaction alongside JAB.
Shares in Caribou rose more than 29 per cent to $16.01 on Monday morning.