A subsidiary of JAB Holding Company plans to acquire Krispy Kreme Doughnuts, closing the deal in the third quarter of the year.

The deal between JAB Holding Company and Krispy Kreme costs $1.35 billion or $21 a share. The price is 25 percent higher than Krispy Kreme's average closing level over the past 20 trading sessions. The Luxembourg-based investment firm owns Keurig Green Mountain, Peet's Coffee & Tea and Caribou Coffee, and now acquiring the North Carolina doughnut company.

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The deal comes after an affiliate of JAB Holdings recently added to its coffee empire with the acquisition of Keurig. JAB Holdings, which is predominantly owned by the Reimann family in Europe, also has stakes in Jacobs Douwe Egberts, the company behind Gevalia, Tassio and other brands. Outside of coffee products, JAB Holdings has stakes in bagel shop operator Einstein Noah, beauty products maker Coty and high-end shoe seller Jimmy Choo.

“We are thrilled to have such an iconic brand as Krispy Kreme joining the JAB portfolio. This is yet another example of our commitment to investing in extraordinary brands with significant growth prospects,” said JAB senior partner Peter Harf in a statement.

Krispy Kreme will be privately owned and will continue to be independently operated from Krispy Kreme’s current headquarters in Winston-Salem, North Carolina. Krispy Kreme was founded in 1937 and has more than 1100 shops around the world, with about 300 of those in the United States.

The popular doughnut company has found a partner in JAB that could help it offset some of the weaknesses in its existing business. JAB has several coffee-centric businesses under its wing, and it is not difficult to imagine executives leveraging those brands to help Krispy Kreme.

TagsJAB Holdings, Krispy Kreme, doughnut, coffee, coffee conglomerate, Keurig