WASHINGTON, December 02, 2021–(BUSINESS WIRE)–JAB Holding Company today announced 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 of 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 core 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 since the positions were established. swap until termination of the swap, which will be up to three years after today’s agreement. Conversely, JAB will be obligated to pay BNP the difference of any negative share price performance between these two dates. BNP will hold all voting rights for the shares acquired during the holding period, 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 potential for many years to come. JAB has two capital pools which are managed together – JAB Holding Company which is an evergreen capital pool, as well as JAB Consumer Partners (“JCP”) which is a series of funds backed by long-term interests similar. investors. This investment strategy allows JAB to invest at scale for the long term behind large companies and large teams, with its JCP partners investing alongside JAB Holding Company. Typically, JAB will initially have a majority stake in a company and oversee it privately, put in place a long-term value creation strategy and, over time, take the company to the public markets. As part of the transition to public, JAB will distribute shares to its JCP investors in a timely manner and create a majority 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 JAB Senior Partner David Bell. “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.”
The deal comes just after Krispy Kreme reported strong third-quarter results, reaffirmed its 2021 guidance buoyed by strong fourth-quarter momentum and confirmed its long-term outlook. Global hotspots grew 46% year over year, with over 10,000 locations worldwide.
This press release is neither an offer to sell nor a solicitation of an offer to buy securities. Further, this release is only issued by JAB and should not be considered guidance 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 momentum, including strong growth prospects, attractive margin and cash flow characteristics, and proven resilience. Along with JAB Consumer Partners, JAB Holding Company is the largest shareholder of Keurig Dr Pepper, a leader in the North American beverage market, and has controlling interests in JDE Peet’s, the largest pure-play fast-drinking coffee company in the world. world. ; NVA, one of the largest animal care service platforms in the world; Independence Pet Holdings, a leading pet insurance provider; Krispy Kreme Donut, a global leader in donuts and other premium 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 ready-to-eat food company; Espresso House, the largest branded coffee chain in Scandinavia. JAB Holding Company is also the largest shareholder of Coty Inc., a global beauty leader, and owns luxury goods company Bally.
See the source version on businesswire.com: https://www.businesswire.com/news/home/20211202005445/en/
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