Seattle-based Starbucks Coffee Co. announced the formal closure of its acquisition of Atlanta-based Teavana Holdings Inc. on Dec. 31, 2012, making the brand a wholly owned subsidiary of Starbucks and the newest member of its emerging brands portfolio.
Starbucks acquired Teavana for an aggregate acquisition price of approximately $620 million in cash and is expecting the acquisition to be accretive to earnings by approximately $0.01 per share in fiscal year 2013, based upon the previously announced earnings targets. Teavana public stockholders of record will receive $15.50 per share in cash.
Jeff Hansberry, president of channel development and emerging brands for Starbucks, wrote in a blog post that the company plans to expand Teavana stores outside of malls and into neighborhoods and onto urban streets. He says the company also plans to add tea bars to Teavana stores to serve handcrafted tea beverages to customers, which also might be incorporated onto Starbucks menus as well.