American Coffee

Peet’s Coffee & Tea announced late Monday that it would acquire Deidrich in a deal valued at about $213 million in cash and stock, marking the company’s foray into the single serve coffee market.

“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.

Investors were happy…Diedrich shares rose to more than $25 a share in after-hours trading.

Diedrich Coffee has been a roaster of high quality Arabica coffees from around the world since 1912, and offers several Keurig K-Cup blends. In fact, this year Diedrich decided to focus on its coffee wholesale business and on its role as a producer of K-Cups for Green Mountain Coffee Roasters and its Keurig single-cup coffee maker.

That decision has been good for the company’s stock as well, which is trading at 10,000% higher than it’s low in early 2009.

Peet’s has been facing pressure from investors for quite some time on its plans to enter the single serve market, accoriding to Oppenheimer analyst Matthew DiFrisco.