An assortment of Krispy Kreme doughnuts in Decatur, Ala. Krispy Kreme is set to be acquired by private investment firm JAB Beech in a $ 1.35 billion deal.(Photo: John Godbey, AP)

Krispy Kreme Doughnuts woke up Monday to a glaze of cash.

The chain famous for its simple glazed yeast doughnut will be acquired by JAB Beech, a subsidiary of investment firm JAB Holdings Company, in a deal valued at $ 1.35 billion. JAB Beech will pay $ 21 a share in cash for Krispy Kreme, a 25% premium over the company’s Friday closing stock price of $ 16.86. The company’s more than 1,100 stores across the world will continue to be operated independently.

The deal will turn Krispy Kreme into a private company and is expected to close in the third quarter this year.

Krispy Kreme’s business has been fairly strong in recent years, with the fourth quarter of 2015 marking its seventh consecutive quarter of same-store sales growth at company-owned stores in the U.S. The majority of Krispy Kreme stores are operated by franchisees, where same-store sales also grew in the quarter ended Jan. 31. As it has expanded abroad though, international franchise store sales have been weaker, falling 7.1% in the fourth quarter on a constant currency basis.

CEO Tony Thompson outlined the company’s plans for growth in March, including continuing to open stores overseas, increasing brand awareness and updating the menu. He said in a company statement Monday that JAB will help Krispy Kreme grow its brand as it expands around the world.

JAB has had its eye on morning treats, acquiring Keurig Green Mountain in a $ 13.9 billion deal last year. It has controlling stakes in other coffee companies including Peet’s Coffee & Tea and Caribou Coffee.

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