Steven E.F. Brown  reports in the San Francisco Business Times that Peet’s Coffee & Tea Co plans to buy Diedrich Coffee Inc. for $213M in cash and stock.

Emeryville-based Peet’s (NASDAQ: PEET) will pay $26 per share for Irvine-based Diedrich, which has about 150 workers. Diedrich’s brands include Gloria Jean’s, Black Tiger and Flor de Apanas. In the fiscal year that ended June 30, Diedrich earned $1.6 million after recording losses totaling $24.8 million in the three preceding fiscal years. It had fiscal 2009 sales of $62.3 million, up 46% from the previous year.

Diedrich (NASDAQ: DDRX) was started in 1972. The acquisition also would mark Peet’s entrance into the market for single-cup coffee packets. Diedrich makes K-Cup brand coffee packets for use with a brewing system marketed by Keurig Inc. of Reading, Mass. Peet’s will get “single serve” rights to the Gloria Jean’s coffee brand in this deal.

“The Diedrich acquisition represents another major strategic growth initiative for our consumer packaged coffee business,” Patrick O’Dea, Peet’s chief executive, said in a statement.

After the deal closes — which Peet’s guesses will be by the end of the year — Diedrich will be a wholly owned subsidiary of Peet’s.

Both boards of directors have blessed the deal. It still requires regulatory approval and must meet certain other conditions.

Peet’s was started in 1966 at the corner of Walnut and Vine streets in Berkeley by Alfred Peet.

San Francisco Business Times & LA Times