Starbucks to Buy Teavana for $620 Million to Add Tea

Starbucks Corp. (SBUX) agreed to buy Teavana Holdings Inc. (TEA) 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 today in a statement. The takeover is expected to close by the end of the year and 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 Inc. to expand into juice and Bay Bread LLC to add pastries. It has also recently started selling energy drinks and a single-serve coffee machine, called Verismo, in the U.S.
Teavana, founded in 1997 by Chairman and CEO Andrew Mack and his wife, Nancy, sells more than 100 kinds of loose-leaf teas.
Teavana jumped 29 percent to $13.04 at 2:20 p.m. in New York before the stock was halted. Starbucks fell 1.6 percent to $49.51 at 2:57 p.m.

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