Starbucks acquires Teavana for $620 million
In a landmark deal for the US tea industry, Starbucks agreed to buy Teavana for $620 million in cash. The purchase of Teavana's 300 shopping mall locations mostly in the US and Canada is a clear signal that Starbucks intends to move beyond cafes, whose sales are lagging in regions where tea is more popular than coffee. For Teavana, the deal is set pave the way for rapid growth beyond North America by tapping the experience and expertise of its new parent company. According to Starbucks, the company will seek to replicate its success in the coffee business by offering more tea-based specialty beverages that can be enjoyed in-stores or on the go. By the same token, Starbucks plans to expand the newly acquired company into the consumer packaged goods category with a line of teas destined for the supermarket sector. The coffee giant offered $15.50 per share to Teavana's shareholders, which was 10 percent below what the stock was priced at on its initial public offering last year.