Peet’s and Diedrich Coffee Companies Merge

Maura Lockwood, Cabot Headline News
November 04, 2009
 
The coffee industry got a welcomed jolt when two leaders, Peet’s Coffee & Tea (PEET) and Diedrich Coffee (DDRX) announced their merger Tuesday, Investor’s Business Daily reported.

Peet’s agreed to acquire Diedrich in a cash and stock deal valued at $213 million, or $26 a share, a premium of 28% over Diedrich’s closing price on Monday, according to IBD.

With the acquisition, Peet’s moves into the fast-growing single cup coffee market. Dierdrich makes K-Cups for Green Mountain Coffee Roaster’s (GMCR) Keurig brand single cup brewers.

GMCR, a Cabot Market Letter stock, is the leader among several coffee-related stocks, according to IBD.

 

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