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This fall has seen an unusual amount of merger-and-acquisition activity by companies involved in specialty tea. Peet’s Coffee & Tea, Cha Dao, Hain Celestial and Carnelian Rose Tea Company all revealed deals in recent weeks.

Peet’s acquisition of Diedrich raises shareholders' eyebrows

Just as it posted a bright third-quarter report, Peet’s, headquartered in Emeryville, Calif., announced it had entered into an agreement to acquire Diedrich Coffee, located in nearby Irvine, Calif.According to the proposed deal, Peet’s would pay $26 per share – or a total of $213 million – in cash and stock for Diedrich.

In its announcement, Peet’s said the acquisition would “further solidify Peet’s leading position in the specialty coffee and tea market,” by allowing it to ante up in the fast-growing K-Cup market, Diedrich’s specialty.

Not so fast! Responded Diedrich shareholders, within a week after Peet’s news. In their own announcements, made separately through law firms Finkelstein Thompson and Kendall Law Group, shareholders said they were investigating the deal due to “potential unfairness of the consideration to be paid” them, as well as “the process by which the Diedrich Board of Directors is addressing the transaction,” according to Finkelstein Thompson’s statement.

In his own announcement, Joe Kendall of Kendall Law added: “The investigation concerns whether the consideration to be paid to shareholders is grossly unfair, inadequate, and substantially below the fair or inherent value of Diedrich and whether the directors and special committee members may have breached their fiduciary duties by not acting in the shareholders’ best interests in connection with the sale process.

The announcement encouraged concerned shareholders to contact the two firms.

Cha Dao Tea gets Coke connection 

Less contentious was a strategic partnership forged between Cha Dao Tea, a ready-to-drink tea maker in Seattle, and BYB Brands, the Charlotte, N.C. subsidiary of Coca-Cola Bottling Co. Consolidated that focuses on development and distribution of beverage brands.

For an undisclosed amount of cash, BYB gets a minority equity interest in Cha Dao, and Cha Dao gets BYB’s “brand development expertise, access to its operational and supply chain experience and capabilities, logistical support and other services,” according to an announcement.

Ghim-Sim Chua, founder and president of Cha Dao, said the partnership represented “validation,” adding that BYB had the “experience and skills to assist us get to the next level.”

Hain Celestial gets in kombucha game

At the very end of October, Melville, N.Y.’s Hain Celestial Group revealed the acquisition of Infinitea Kombucha in Boulder, Colo.Although the publicly traded Hain Celestial did not disclose terms of the deal, it did say that it would cease production of the Infinitea line and, in the spring, would launch its own brand of kombucha, a fermented probiotic tea.

Infinitea owner Nicole Gervace joined Celestial Seasonings as part of the deal. She will be product manager overseeing the new kombucha line.

“We are excited about the opportunity to add kombucha to our Celestial Seasonings brand. Kombucha is a rapidly growing category and a natural brand extension into ready to drink tea,” Celestial Seasonings General Manager Peter Burns said in a statement 

Carnelian Rose goes to Basilur Tea

In its November newsletter, Vancouver, Wash.-based Carnelian Rose Tea Co. announced it had been acquired by Allure Tea, the North American Distributor of Basilur Tea, located in Colombo, Sri Lanka. The companies did not disclose terms of the deal; however, in the newsletter, Carnelian Rose owner Jennifer Petersen wrote that Basilur had acquired, “Carnelian Rose Tea Co, its blends and me along with it.”

She said she would keep customers posted as news develops, adding, “I hope that you've enjoyed our friendship over the last dozen or so years as much as I have.”