Peet's Sold to Germany-based Company

As it’s grown from a single aromatic outlet in Berkeley's Gourmet Ghetto into a major player in the retail coffee business, Peet’s Coffee & Tea has weathered a number of major changes. Now it's undergoing another big one.

The publicly traded, Emeryville-based company that was started by Alfred Peet in 1966 and taught Starbucks founders how to roast coffee is being acquired and taken private by Germany-based Joh. A Benckiser for about approximately $977.6 million, the two companies announced Monday, according to the Washington Post. 

Peet's has a store in the Pinole Valley Shopping Center.

The buyer is paying $79.50 a share for Peet’s, which is a premium of 29 percent over the closing stock price on Friday, according to Reuters. The value of Peet's shares leaped Monday by 27.8 percent, to close at $73.05, the Post reported.

"We are very excited about this next chapter in Peet's rich history," said Patrick O'Dea, President and CEO of Peet's. "Over many years we've demonstrated an unyielding commitment to craft coffees and teas of uncompromised quality. This commitment is what has distinguished the Peet's brand among all others and will continue to guide us as we go forward."

Peet's employees and management will stay with the company, and the headquarters will remain in Emeryville, the Post said.

Peet’s revenue shot up by 11 percent last year, to nearly $372 million. At the same time, profit rose to nearly $18 million. 

Ten months ago,  interviewed employees about a sea change in the culture of the organization. They said the company was lowering costs low by firing employees for minor offenses and stepping up demands to work faster and sell more aggressively. 

One told Henry she was pressured into signing an agreement that waived her right to a lunch break during six-hour shifts.