US

Diedrich Coffee Inc, the Irvine, USA-based coffee roaster and distributor, has announced that it is to be bought by by Peet’s Coffee & Tea Inc. in a deal estimated to be worth around US$213 million in cash and stock.

Peet’s, based in Emeryville, California, offered the equivalent of US$26 for each Diedrich share, or 28% more than the last closing price of US$20.36.

Peet’s is expected to see gains in its wholesale business once the deal completes, and the company has announced thast it expects to triple sales of its coffee beans to US grocery stores by 2014.

"The Diedrich acquisition represents another major strategic growth initiative for our consumer packaged coffee business," said Patrick O’Dea, Peet’s chief executive.