Peet's Coffee gets $140 million debt commitment for potential purchase of Diedrich

By Sara Rosenberg

New York, Nov. 23 - Peet's Coffee & Tea Inc. has received a commitment for $140 million of debt financing to help fund its proposed acquisition of Diedrich Coffee Inc., according to a news release.

Wells Fargo Bank and Wells Fargo Securities LLC provided the debt commitment.

Peet's is offering to purchase Diedrich in a cash-and-stock offer valued at $32 per share, or a total value of roughly $265 million, based on Peet's closing stock price of $38 on Nov. 20.

Originally, Peet's was offering $26 per share in cash and stock, but that offer was later trumped by Green Mountain Coffee Roasters Inc., which offered $30 per share in cash for Diedrich.

"We are confident that the Diedrich board will find our revised proposal to be superior for Diedrich's shareholders," said Patrick O'Dea, president and chief executive officer of Peet's, in the release.

"With our enhanced proposal, we continue to believe that this acquisition would create significant value for our shareholders."

Peet's is an Emeryville, Calif.-based specialty coffee and tea company. Diedrich is an Irvine, Calif.-based coffee company.

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