German Billionaire Family Buys Caribou Coffee for $340M

When a beloved coffee chain suddenly changes hands, customers and industry watchers want to know: Who’s buying it, how much did it cost, and what happens next? In December 2012, one of America’s well-known mid-sized coffee chains announced it was being sold to one of Europe’s richest investment groups—and the numbers, and the players, tell a bigger story about consolidation in specialty retail coffee.

The deal is done: JAB, the investment arm of Germany’s billionaire Reimann family, has agreed to buy Caribou Coffee for $340 million. That works out to $16 per share, a 30% premium over the stock’s $12.32 closing price the previous Friday.

Who Owns Caribou Coffee Now?

Founded in 1992 and headquartered in Minneapolis, Caribou Coffee operates 610 locations across the United States and internationally. Though purchased by JAB, Caribou will continue running as an independent company with its own brand identity and management team. The acquisition keeps the Caribou name alive but places it under the wing of one of the world’s most acquisitive coffee investors.

Who Is JAB and Why Does It Keep Buying Coffee Brands?

JAB, or Joh. A. Benckiser Group, is backed by the Reimann family—one of Germany’s wealthiest and most private dynasties. Through JAB, the Reimanns have quietly built a massive portfolio of consumer brands. Their coffee-related acquisitions are particularly notable: earlier in 2012, JAB paid $974 million for a controlling stake in Peet’s Coffee & Tea (NASDAQ: PEET). JAB also owns or controls global brands such as Coty, Bally, Derek Lam, and Reckitt Benckiser. Their strategy focuses on acquiring established, often premium, consumer businesses—and coffee is a key sector for them.

What’s the Deal Structure and Shareholder Impact?

Under the agreement, JAB will pay $16 for each outstanding share of Caribou Coffee, which had approximately 20.3 million shares outstanding according to FactSet data. This values the entire company at $340 million. The $16-per-share offer represents a substantial premium and provides current shareholders with an attractive return compared to recent trading prices.

Frequently Asked Questions

Which family is buying Caribou Coffee?

The Reimann family of Germany, one of the country’s wealthiest and most private dynasties, is behind the acquisition through their investment company JAB (Joh. A. Benckiser Group).

How much did JAB pay for Caribou Coffee?

JAB is paying $340 million in total, or $16 per share. This is a 30% premium over Caribou Coffee’s closing stock price of $12.32 on the Friday before the announcement.

How many Caribou Coffee stores are there?

Caribou Coffee operates 610 locations across the United States and internationally as of the time of the acquisition announcement.

Will Caribou Coffee change after the acquisition?

No immediate changes are planned. Caribou Coffee will continue to operate as an independent company with its own brand and management team, despite being owned by JAB.

What other coffee brands does JAB own?

JAB has acquired Peet’s Coffee & Tea for $974 million earlier in 2012, and also owns global consumer brands including Coty, Bally, Derek Lam, and Reckitt Benckiser. They have a strong focus on the premium coffee sector.

Why is JAB buying so many coffee companies?

JAB, backed by the Reimann family, is strategically building a portfolio of well-known consumer brands, with a particular emphasis on premium and specialty coffee businesses like Peet’s and now Caribou.