The investor that’s buying Krispy Kreme is building a coffee and bagel empire

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Packets of Douwe Egberts coffee are seen at a supermarket in Amsterdam
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REUTERS/United Photos

The investor group that runs the biggest pure-play coffee company in the world decided to add some sweetness to its menu.

JAB Holdings and its partners are spending about $1.35 billion to buy Krispy Kreme Doughnuts, according to a press release today. The deal is expected to close in the third quarter.

“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.

JAB, the investment arm of the secretive Reimann family, previously spent $13.9 billion buying home-brewing coffee company Keurig Green Mountain in late 2015. JAB has been busily scooping up companies in the consumer and food sectors in the past few years.

The family members behind JAB are Renate Reimann-Haas, Wolfgang Reimann, Stefan Reimann-Andersen, and Matthias Reimann-Andersen. They owe their wealth to Benckiser, which is now Reckitt Benckiser, a consumer products company which owns everything from Durex to Gaviscon

They are all descendants of Ludwig Reimann, a chemist who joined Benckiser shortly after it was founded by Johann Adam Benckiser in 1823. Reimann married one of Benckiser’s daughters, and ended up owning the company after his death.

JAB continues to own a stake in Reckitt Benckiser. It also has a luxury arm which houses investments in Jimmy Choo, Belstaff and Bally, and owns perfume maker Coty.

Business Insider breaks down JAB Holdings’ massive portfolio:


JAB acquired Peet’s Coffee and Tea in 2012.

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REUTERS/Kimberly White

JAB Holdings acquired Peet’s back in 2012 for about $1 billion.


It then did a deal for Caribou Coffee.

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By mastermaq on Flickr

JAB also runs Caribou Coffee Co., which it acquired in 2013 for $340 million. Caribou Coffee is based in Minnesota.


Next up was D.E Master Blenders 1753

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D.E Master Blenders

JAB struck a deal in 2013 to buy D.E. Master Blenders 1753, which had been spun out of Sara Lee Corp. a year earlier, for $9.8 billion.


Then it struck a big deal in 2014 to create Jacobs Douwe Egberts, which owns brands including Kenco, Tassimo, Senseo and Moccona.

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Jacobs Douwe Egberts

The biggest brand under JAB’s umbrella is Jacobs Douwe Egberts, the world’s biggest coffee company, which has revenues totaling more than 5 billion euros. That entity was formed as a result of a merger between another JAB brand and Mondelēz International coffee products, which closed earlier this year. Mondelēz maintains a 44% stake in the combined company.


JAB Holdings bought Einstein Bros. parent company in 2014.

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Einstein Bros

JAB also bought Einstein Noah, a Colorado-based bagel company, in a $370 million deal. Einstein Noah was founded in 1995 and was operating more than 850 stores nationwide at the time of the sale.


It also recently acquired the leading Nordic coffee retailer.

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Espresso House

JAB Holdings reached a deal worth more than $300 million to buy Espresso House, the leading coffee chain in Sweden and Norway, in 2015.


JAB-owned Peet’s Coffee and Tea has gone on a buying spree.

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Wikimedia Commons

Peet’s has since gone on a buying spree, picking up two US brands – Stumptown and Intelligensia – in November. They are based in Portland and Chicago, respectively.


JAB’s holdings don’t stop there, either.

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JDC

JAB Holdings also has investments in top European brands, including Marcilla Professional, Pickwick, and Friele, to name a few. The company also owns leading makers of high-end brewing products.


And now it has added Krispy Kreme to the mix.

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Krispy Kreme

JAB Holdings and its partners are spending about$1.35 billionto buy Krispy Kreme Doughnuts.

Jonathan Marino contributed to an earlier version of this post.