Published November 14, 2012
Starbucks Corp said on Wednesday it plans to acquire tea store operator Teavana Holdings Inc for $620 million in cash, furthering its push beyond its flagship coffee business.
Starbucks, the world's largest coffee shop operator, said it will pay $15.50 per share in cash for Teavana, a 54 percent premium to the company's closing price on the New York Stock Exchange on Tuesday.
Shares of Atlanta-based Teavana jumped to $15.43 in afternoon trade on the New York Stock Exchange.
Starbucks has been expanding beyond its core products with its acquisitions of juice company Evolution Fresh and sandwich maker La Boulange Bakery.
Janney Capital Markets analyst Mark Kalinowski said Starbucks could aim for synergies, including selling Teavana's teas in its coffee shops and possibly through other outlets.
News of a deal was first reported by the Atlanta Business Chronicle.
Starbucks shares fell 2 percent to $49.30 on the Nasdaq.
(Reporting By Martinne Geller in New York; editing by John Wallace and Leslie Adler)