• July 23, 2012

Joh. A. Benckiser (JAB), the investment group for the Reimann family of Germany, has agreed to acquire Peet's Coffee & Tea Inc. for $73.50 per share in cash, or about $1 billion.

The agreement, which was unanimously approved by the Peet’s board of directors, represents a premium of approximately 29% over Peet’s closing stock price on July 20.

Peet’s will be privately owned, will continue to be operated by the company’s current management team and employees, and will continue to be based in the San Francisco area.

Founded in Berkeley, Calif., in 1966, Peet's competes with Starbucks, which owned it for a few years in the 1980's.

JAB's portfolio includes a majority stake in Coty Inc., and minority stakes in Reckitt Benckiser Group PLC and D.E Master Blenders 1753. The group also owns Labelux, a luxury goods company with brands such as Jimmy Choo, Bally and Belstaff. 

Reuters reports that JAB earlier this month said it might increase its stake in Master Blenders, the Douwe Egberts coffee business spun out of Sara Lee and listed in Amsterdam.

BDT Capital is participating in the Peet's transaction as an advisor and minority investor.