Millions of people around the world are hooked on Starbucks. And after their latest move, millions more probably will be.
On Wednesday Starbucks announced plans to acquire tea store operator Teavana Holdings for $620 million in cash or 15.50 per share, a 54 percent premium to the company's closing price on Tuesday.
And in a live interview on CNBC's Fast Money Starbucks CEO Howard Schultz said the premium was well worth the long term opportunity presented by the acquisition.
"We're buying a business that is in its early stages – and once it's powered by Starbucks capability we're looking at a huge opportunity domestically and internationally that will serve our shareholders well," he said.
In other words, if Starbucks can't sell you a cup of coffee, Schultz is determined to sell you tea.
Schultz explained that Teavana has 300 stores that are mall based and that the stores do not have a beverage business to speak of.
"Just like in the mid 80's when we brought an espresso bar into our Starbucks stores – we can create a very unique beverage experience that will build frequency and loyal customers."
However malls will just be the beginning.
"We strongly believe we can build urban neighborhood sites around the country and around the world."
Sounds like world domination to us.
Starbucks expects the deal to close by the end of the year and to add 1 cent per share in earnings in fiscal 2013.
Posted by CNBC's Lee Brodie
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Trader disclosure: On November 14, 2012, the following stocks and commodities mentioned or intended to be mentioned on CNBC's "Fast Money" were owned by the "Fast Money" traders; Scott Nations is long BAC; Scott Nations is long BAC CALLS; Scott Nations is long C; Scott Nations is long YHOO; Scott Nations is long SPY; Scott Nations is long S&P VOLATILITY; Tim Seymour is long AAPL; Tim Seymour is long BAC; Tim Seymour is long INTC; Guy Adami is long C; Guy Adami is long GS; Guy Adami is long INTC; Guy Adami is long AGU; Guy Adami is long MSFT; Guy Adami is long NUE; Guy Adami is long BTU; Brian Kelly is long EWT; Brian Kelly is long SMH; Brian Kelly is long OIL; Brian Kelly is long EPV; Brian Kelly is long BRENTOILFUTURES; Brian Kelly is short EUROSTOXX FUTURES; Brian Kelly is short YEN; Karen Finerman is long AAPL; Karen Finerman is long BAC; Karen Finerman is long JPM; Karen Finerman is long WMT; Karen Finerman is long TGT; Karen Finerman is long MSFT; Karen Finerman is long GOOG; Karen Finerman is long EBAY; Karen Finerman is long M; Karen Finerman is short JCP; Karen Finerman is short SPY; Karen Finerman is short IWM; Karen Finerman is short SPY
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