Krispy Kreme being taking private in $1.35B deal

NEW YORK (AP) – Krispy Kreme is being taken private by JAB Beech in a deal worth approximately $1.35 billion.

The doughnut company’s stock soared more than 23 percent in Monday premarket trading.

JAB Beech Inc. will pay $21 for each share of Krispy Kreme Doughnuts Inc. That’s about a 25 percent premium to the Winston-Salem, North Carolina-based company’s Friday closing price of $16.86.

Krispy Kreme’s board unanimously approved the transaction, which is targeted to close in the third quarter. The company said that it will postpone its annual shareholders meeting, which was originally set for June 14.

(Copyright 2016 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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