Starbucks is expanding tea business with a $620 million purchase of Atlanta-based tea seller Teavana. The coffee giant says that it sees a growing market for tea. Starbucks already owns the Tazo tea brand.
Starbucks plans to expand Teavana Holdings' network of 300 mall-based stores and plans to add stores elsewhere.
Teavana shareholders will receive $15.50 per share in cash in the deal, which is expected to close by the end of the year.
Teavana gained more than 50 percent in Wednesday trading. Starbucks Corp. shares lost nearly 3 percent.
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