Peet’s Coffee To Buy Diedrich Coffee

November 3, 2009 (FinancialWire) — Peet’s Coffee & Tea, Inc. (NASDAQ: PEET) has agreed to acquire Diedrich Coffee, Inc. (NASDAQ: DDRX) in a cash-and-stock transaction valued at $26 per share or a total value of around $213 million.

According to Peet’s, the acquisition will allow Peet’s to enter the single cup coffee market. As a part of the transaction, Peet’s will acquire Diedrich’s portfolio of brands including Diedrich Coffee, Coffee People and the single serve rights to the Gloria Jean’s coffee brand.

Peet’s will also be acquiring Diedrich’s roasting and packaging facility capable of roasting and packaging unflavored and flavored coffees, with current and future K-Cup production capacity.

Emeryville, California-based Peet’s Coffee & Tea offers coffees and teas in multiple forms and sells though a direct store delivery selling and merchandising system.

Irvine, California-based Diedrich Coffee specializes in sourcing, roasting and selling coffees. The company markets its three brands of specialty coffees, Diedrich Coffee, Coffee People and Gloria Jean’s Coffees, through office coffee service distributors, restaurants and specialty retailers, and via the company’s web stores. Diedrich Coffee is one of four roasters under license to produce K-Cups for Keurig Inc.’s single-cup brewing system.

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