Krispy Kreme plans new debt financing for purchase by JAB Beech

By Sara Rosenberg

New York, May 9 – Krispy Kreme Doughnuts Inc. has received a commitment for debt financing to help fund its acquisition by JAB Beech Inc., according to an 8-K filed with the Securities and Exchange Commission on Monday.

Under the agreement, Krispy Kreme is being bought for $21 per share in cash, or a total equity value of about $1.35 billion.

Closing is expected in the third quarter, subject to customary conditions, including receipt of regulatory and shareholder approvals. The transaction is not subject to a financing condition.

Barclays and BDT & Co. LLC are serving as financial advisers to JAB, and Wells Fargo Securities LLC is serving as financial adviser to Krispy Kreme.

Krispy Kreme is a Winston-Salem, N.C.-based specialty retailer and wholesaler of sweet treats and complementary products.

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