JAB Holding Company increases economic exposure to Krispy Kreme
WASHINGTON–(COMMERCIAL THREAD) – JAB Holding Company announced today that it has increased its economic exposure to Krispy Kreme by entering into a three-year total return swap agreement with BNP Paribas (“BNP”) for up to 6,500,000 shares by Krispy Kreme, Inc. (NASDAQ: DNUT) (“Krispy Kreme” or the “Company”) as a whole. The transaction allows JAB Holding Company to benefit from its firm belief that there is significant long-term value creation to come in Krispy Kreme. JAB Holding Company currently owns approximately 44.77% of the outstanding shares and intends to be a major shareholder for many years to come.
Under the terms of the agreement, BNP will acquire shares on the open market over the next few months and BNP will be required to pay JAB the difference of any positive share price performance from the establishment of the swap positions until upon termination of the swap, which will take place up to three years from today’s agreement. Conversely, JAB will be obliged to pay BNP the difference of any negative performance of the share price between these two dates. BNP will hold all voting rights for the shares acquired during the period it holds them, while JAB will receive all dividends paid on the shares.
The transaction is in line with JAB’s long-term strategy of investing in world-class brands and companies that have significant growth prospects for many years to come. JAB has two pools of capital which are managed together – JAB Holding Company, which is a pool of permanent capital, as well as JAB Consumer Partners (“JCP”), which is a series of investor-backed funds. This investment strategy allows JAB to invest on a large scale over the long term behind large companies and large teams, its JCP partners investing alongside JAB Holding Company. Typically, JAB will initially own a controlling stake in a business and oversee a business privately, implement a long-term value creation strategy, and over time bring the business to the public market. As part of the transition to public status, JAB will distribute timely shares to its JCP investors and create a mostly independent board of directors, while JAB Holding Company will remain invested as a reference shareholder for a very long time, sometimes decades or more. .
“Today’s announcement is another strong indication of JAB’s confidence in Krispy Kreme’s long-term potential and growth prospects, ”said David Bell, Senior Partner at JAB. “Through this transaction, we will have additional exposure to Krispy Kreme, while continuing to secure our position as a long-term investor in its future. ”
The deal comes just after Krispy Kreme reported strong third quarter results, reaffirmed its guidance for 2021 supported by strong fourth quarter momentum and reconfirmed its long-term outlook. Global hotspots grew 46% year over year, with more than 10,000 locations worldwide.
This press release is neither an offer to sell nor the solicitation of an offer to buy securities. Further, this press release is published only by JAB and should not be taken as a direction or projections of any company’s financial results or the price of any security.
JAB Holding Company invests in consumer-driven industries with attractive long-term dynamics, including strong growth prospects, attractive margins and cash flows, and proven resilience. Along with JAB Consumer Partners, JAB Holding Company is the largest shareholder in Keurig Dr Pepper, a leader in the North American beverage market, and has controlling stakes in JDE Peet’s, the world’s largest and fastest growing consumer goods coffee company. in the world. ; NVA, one of the world’s largest animal care service platforms; Independence Pet Holdings, a leading provider of pet insurance; Krispy Kreme Donut, a world leader in premium donuts and other sweet treats; Panera Brands, one of the world’s largest casual fast food companies, which includes Panera Bread, Caribou Coffee, and Einstein Bagels; Pret A Manger, a leading company in the ready-to-eat market; Espresso House, the largest chain of branded coffee shops in Scandinavia. JAB Holding Company is also the largest shareholder of Coty Inc., a global leader in beauty, and owns the luxury goods company Bally.