Starbucks agreed to buy Teavana Holdings for about $620 million as Chief Executive Officer Howard Schultz expands beyond U.S. coffee shops.
Teavana investors will receive $15.50 a share in cash, Seattle-based Starbucks and Atlanta-based Teavana said Wednesday in a statement. The takeover, expected to close by year’s end, will add about 1 cent to earnings per share in Starbucks fiscal 2013, the companies said.
Starbucks, which dropped the word “coffee” from its logo last year, has in the past 13 months bought Evolution Fresh to expand into juice and Bay Bread to add pastries. It has also recently started selling energy drinks and a single-serve coffee machine, called Verismo, in the United States.
Teavana, founded in 1997 by Chairman and CEO Andrew Mack and his wife, Nancy, sells more than 100 kinds of loose-leaf teas.