JAB Holdings increases stake in Krispy Kreme

JAB Holdings now holds a near 45% in Krispy Kreme | Photo credit: Ben Dutton

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JAB Holdings has said it intends to be an ‘anchor shareholder’ in Krispy Kreme ‘for many years to come' after announcing a three-year total return swap agreement with BNP Paribas (BNP) for up to 6.5 million shares in the company.
 
JAB now holds a near 45% stake in Krispy Kreme. In a press release, the Luxembourg-headquartered investment firm said the deal would enable it to ‘benefit from its strong belief that there is significant long-term value creation to come in Krispy Kreme’.
 
“Today’s announcement is another strong indication of JAB’s confidence in the long-term potential of Krispy Kreme and its growth prospects,” said David Bell, Senior Partner, JAB Holding Company.
 
“Through this transaction we will gain additional exposure to Krispy Kreme, while continuing to secure our position as a long-term investor in its future,” he added.
 
The agreement comes after Krispy Kreme reported robust third quarter results, with revenues growing 18% to $343m compared to the same period in 2020. Those results also showed that Krispy Kreme had grown its retail and branded stores presence 46% over the last year to reach more than 10,000 locations around the world.
 
In June 2021, Krispy Kreme returned to the stock market in an IPO that valued the company at $2.7bn, five years after JAB took the company private as part of a $1.4bn acquisition deal.
 
In September, Krispy Kreme opened its first store in Egypt and took majority control of Canadian franchisee Krispy K Canada in a bid to accelerate growth in the country.