TEA

Last Wednesday, Starbucks (click ticker for report: ) announced that it will acquire tea retailer Teavana (TEA) for $15.50 per share in an all cash transaction valued at $620 million. The deal is expected to add one cent to Starbucks’ earnings in 2013. Though the deal represented a significant premium to the recent share price, the acquisition price is below Teavana’s IPO price, which will certainly set off some shareholder lawsuits. We’re more interested in the impact it will have on Starbucks. Unlike the recent lack of innovation we’ve seen at a company such as McDonald’s (click ticker for report: ), Starbucks hasn’t been afraid to make drastic moves to drive store traffic and keep the brand relevant. In addition … Read more