Peet’s Coffee & Tea CEO Patrick O’Dea has told his employees the company wasn’t shopping itself around to potential suitors. Joh. A. Benckiser just made an unsolicited offer Peet’s board couldn’t refuse.
“The company was not for sale. JAB made an unsolicited offer to buy the company that the board of directors determined was in the best interests of shareholders to accept,” Peet’s said in a regulatory filing late Monday that included a letter to employees.
This admission comes as a slew of shareholder litigation firms issued press releases Monday saying they planned to investigate potential claims against Peet’s board. One issue they plan to look at is whether the board conducted a fair process to sell the for the best possible price.
On Monday, JAB, a private investment group with three principals and a small support staff, said it plans to buy Peet’s for $1 billion in cash, or $73.50 a share. It’s a premium price for Peet’s. JAB is paying 32.5 times Peet’s estimated earnings for 2013, FactSet data shows. Peet’s shares hit a record high of $77.60 March 28.