Peet's Coffee to acquire Diedrich Coffee for $213M

Emeryville, Calif. Coffee chain retailer Peet's Coffee & Tea announced late Monday that it will acquire Irvine, Calif.-based roaster and distributor Diedrich Coffee for $213 million in cash and debt assumption.

The transaction brings such Peet's brands as Diedrich Coffee, Coffee People and the single-serve rights to the Gloria Jean's coffee brand, as well as Diedrich's roasting and packaging facility.

The deal is expected to close by year end, making Diedrich a wholly owned subsidiary of Peet’s.

In September, Diedrich reported profit of $3 million on revenue of $20.1 million for its fiscal 2009 year ended in June. The company has forecast 2010 revenue of $90 million to $95 million.

Last month, Peet's raised its 2009 profit guidance after reporting third-quarter earnings of $2.5 million on revenue of $73.9 million.