Peet's increases bid for Diedrich Coffee

Seattle Peet’s Coffee & Tea has increased its offer to buy Diedrich Coffee by 24% to about $265 million. The move follows a rival bid from Vermont’s Green Mountain Coffee Roasters, according to a Reuters report.

Peet’s offer is a $32 a share in cash and stock. Meanwhile, Green Mountain is offering $30 a share in cash for Diedrich Coffee.

Last month, Green Mountain wrapped up its purchase of Timothy’s Coffees of the World for $157 million.

Peet’s would gain access to Diedrich’s license to make K-Cup brand coffee packets for Keurig brewing equipment. Green Mountain is working to gain a stronghold on K-Cup licenses.

By buying Diedrich, Green Mountain would attempt to head off Peet's as it expands into grocery stores, the report said.