Article: Peet's, Diedrich Coffee Companies Merge.(News)

Byline: Jonathan Marino

Peet's Coffee & Tea will buy Diedrich Coffee in an all-stock deal.

Clearly, the coffee has some kick--news of the merger sent both companies' shares up in morning trading; Diedrich traded up yesterday as well while Peet's shares slipped about five percent.

The deal is valued at $213 million, with Diedrich being bought at $26 per share. Peet's is entering the growing single-up space that has proven valuable to brewers and specialty companies.

Earlier this year, California-based Diedrich dumped its retail franchise business to Praise International North American Inc., an affiliate of Gloria Jean's Coffees, for a ...

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