Teavana to be Acquired by Starbucks While Slumping to 52-Week Lows
Teavana Holdings (NYSE:TEA) has been purchased by Starbucks Corporation (NASDAQ:SBUX) in an all-cash acquisition, for an aggregate acquisition price of around $620 million. The buyer anticipates that the purchase should become accretive to earnings by about 1 cent per share in its fiscal year 2013, calculated from the previously released earnings targets. Teavana stockholders of record will receive $15.50 per share in cash from the transaction, which will end in Teavana becoming a wholly-owned subsidiary of Starbucks. Stockholders of Teavana holding around 70 percent of the outstanding shares of common stock have okayed the deal via written consent, and transaction should close by the year’s end. Shares closed up 52.52 percent on the day at $15.45, having been traded in a 52-week range of $10.05 to $26.03.
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