The company that bought Keurig is buying Krispy Kreme

JAB Holding Company is buying Krispy Kreme Doughnuts for $21 a share, or about $1.35 billion.

The deal is expected to close in the third quarter.

Last year JAB spent $13.9 billion to buy the home-brewing company Keurig Green Mountain.

It also owns Caribou Coffee and JAB also has controlling stakes in Peet's Coffee & Tea.

"This transaction puts us in the best possible position to continue to spread that joy to a growing number of people around the world while delivering significant value to Krispy Kreme shareholders," Krispy Kreme chairman Jim Morgan said in a statement.

Wells Fargo is advising Krispy Kreme and Barclays and BDT & Company are advising JAB.

JAB also owns a stake in the consumer products company Reckitt Benckiser, which owns everything from Durex to Gaviscon. It also has a luxury arm which houses investments in Jimmy Choo, Belstaff and Bally, and owns perfume maker Coty.

JAB struck a deal in 2013 to buy D.E. Master Blenders 1753, and later agreed a deal with Mondelez International to combine their respective coffee businesses. That created Jacobs Douwe Egberts, which describes itself as the biggest pure-play coffee company in the world.

Here is the press release:

WINSTON-SALEM, N.C.--(BUSINESS WIRE)--Krispy Kreme Doughnuts, Inc. (NYSE: KKD) ("Krispy Kreme" or the "Company") and JAB Beech Inc., an indirect controlled subsidiary of JAB Holding Company ("JAB") in which BDT Capital Partners is a minority investor alongside JAB, today announced that the companies have entered into a definitive merger agreement under which JAB Beech will acquire Krispy Kreme for $21 per share in cash, or a total equity value of approximately $1.35 billion. The agreement, which has been unanimously approved by Krispy Kreme's Board of Directors, represents a premium of approximately 25% over the Company's closing stock price on May 6, 2016.

At the close of the transaction, Krispy Kreme will be privately owned and will continue to be independently operated from Krispy Kreme's current headquarters in Winston-Salem, N.C.

Jim Morgan, Chairman of the Board of Directors of Krispy Kreme, commented, "For nearly 80 years, our iconic brand has been touching and enhancing lives through the joy that isKrispy Kreme. This transaction puts us in the best possible position to continue to spread that joy to a growing number of people around the world while delivering significant value to Krispy Kreme shareholders. I am confident the JAB team is the right partner with whom to continue building upon our incredible legacy."

Tony Thompson, CEO of Krispy Kreme, commented, "JAB's experience and industry knowledge make them the ideal partner to help grow the iconic Krispy Kreme brand throughout the world. We remain focused on our long term strategy and continuing to offer our premium, high-quality doughnuts and sweet treats to consumers around the world. We look forward to working with JAB to continue bringing the joy that is Krispy Kreme to a growing number of customers. Together with our talented team and our passionate franchisees, we will continue to build on the Krispy Kreme culture, values and commitment to our customers and guests."

Peter Harf, Senior Partner at JAB, commented, "We are thrilled to have such an iconic brand as Krispy Kreme joining the JAB portfolio. This is yet another example of our commitment to investing in extraordinary brands with significant growth prospects. We feel strongly that Krispy Kreme will benefit greatly from our long-term focus and support for management's vision in building on the legacy of this exciting brand as an independent standalone entity."