Shares of Diedrich Coffee (Nasdaq: DDRX) spiked nearly 27 percent on Tuesday after Peet’s Coffee and Tea (Nasdaq: PEET) announced it will acquire the wholesale coffee roaster and distributor for $213 million.

Peet’s will pay in cash and stock for Diedrich, with the $26 per share price representing a nearly 28 percent premium to the stock’s Monday close of $20.36. For each Diedrich share, Peet’s will pay $17.33 in cash and a fraction of a Peet’s share valued at about $8.67.

Peet’s said it will pay for Diedrich with a combination of cash and $140 million in debt. The purchase, which is expected to close by the end of this year, will dilute 2010 earnings but should add to profit after that.

“The Diedrich acquisition represents another major strategic growth initiative for our consumer packaged coffee business, by entering and driving adoption of the single cup segment through Diedrichs high-growth K-Cup business,” said Peet’s President and CEO Patrick O’Dea, in a statement.

Peet’s is acquiring Diedrich to enter the quickly growing single-cup coffee market. Diedrich, whose share price hit a 52-week low of $0.21 has rebounded remarkably on the back of popular K-Cup single serve coffee packs, through a licensing agreement with Green Mountain Coffee Roasters (NASDAQ: GMCR).

Diedrich’s Chairman, Paul Heeschen, along with other directors and executive officers representing more than 32 percent of the company’s shares agreed to tender their stock in the offer. The acquisition, which was unanimously approved by both company’s boards of directors, is still pending regulatory approval and other closing requirements.

Diedrich reported profit of $3 million on revenue of $20.1 million for its fiscal 2009 year, which ended in June. The company has forecast 2010 revenue of $90 million to $95 million. Last month, Peet’s raised its 2009 profit guidance after reporting third-quarter earnings of $2.5 million on revenue of $73.9 million.