May 11, 2016 08:47 AM EDT

Krispy Kreme Acquired By JAB Beech: Donut Company On A Sugar Rush, Plans To Expand In 2017

By Jane Reed

Talk about sugar rush. Krispy Kreme is on a high caffeine boost after JAB Beech announced on Monday that it's acquiring the doughnut business. The company has settled on a private deal that is worth about $1.35 Billion.

Although JAB Beech has acquired Krispy Kreme, the well-known North Carolina company will continue to operate independently. That includes the 1,100 settled shops globally. Three hundred of those shops are in the United States.

What's in store for the future? In 2017, NBC News noted that Krispy Kreme will be opening new sites around the world. Between 120 to 140 sites are planned to be put up. In addition, 30 shops will be put up in the United States. However, JAB declined to make anyone available to discuss its plans for Krispy Kreme. Industry watchers speculated JAB could pair Krispy Kreme with one or more of its coffee brands (Keurig Green Mountain, Peet's Coffee & Tea and Caribou Coffee.)

That means employment and beverage sales in their respective economies. Krispy Kreme stores in the United States draw most of their sales from doughnuts and pastries. Coffee, beverages and sandwiches come in second. With the JAB Beech acquisition, both companies are planning to increase its beverage sales.

The acquisition itself is the firm's strategy of investing in brands with significant growth prospects, said Peter Harf, a JAB authority. The Wall Street Journal reports that JAB Holdings has a portfolio of brands under its belt. Including Jimmy Choo shoes, Durex condoms and Carribou Coffee.

Krispy Kreme will continue to compete with Dunkin Donuts and Starbucks in the highly competitive coffee market.

While plans are still being discussed behind closed doors, the economy looks to the expansion of Krispy Kreme for increase in employment, economic growth and stability.

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