The US doughnut company Krispy Kreme has agreed to be bought by Kenco coffee owner, JAB Holding, for £935m ($1.35bn).

The deal between Krispy Kreme and Kenco is expected to close by September, when the 80-year-old doughnut firm will be privately held. It does not own the UK Krispy Kreme business, which was bought out by management in 2011 and is currently planning a flotation.

In reaction to the news, shares in Krispy Kreme jumped by 24% as Wall Street opened yesterday (10 May).

German investment firm JAB also owns coffee brands Peets and Douwe Egberts, as well as the luxury shoe firm Jimmy Choo and beauty firm Coty.