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Starbucks to Acquire Teavana Holdings (SBUX, TEA)

By Dividend.com,  November 15, 2012, 08:18:56 AM EDT

Coffee retailer, Starbucks Corporation( SBUX ) has announced on Wednesday that they will be acquiring Teavana Holdings Inc ( TEA ).

SBUX reported that they plan to purchase the tea store chain, which has around 300 stores in the US and internationally for $620 million. Starbucks expects this acquisition to close by the end of the year, and they are estimating that it will add one cent per share to their full year EPS in 2013.

This will be Starbucks third acquisition in the past year, which is seeking to grow in diverse areas beyond the coffee business.

SBUX will pay $15.50 per share to Teavana shareholders.

Starbucks shares were mostly flat during premarket trading Thursday. The stock is up 6.15% YTD.

The Bottom Line
Shares of Starbucks ( SBUX ) have a 1.72% dividend yield, based on last night's closing stock price of $48.84. The stock has technical support in the $44-$45 price area. If the shares can firm up, we see overhead resistance around the $52-$53 price levels.

Starbucks Corporation( SBUX )is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .




The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.


This article appears in: Investing, Stocks

Referenced Stocks: SBUX, TEA



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