ST. LOUIS—After taking donut chain Krispy Kreme private last year for $1.35 billion, JAB has baked up an even bigger deal for Panera Bread Co. The all-cash merger is valued at about $7.5 billion, including the assumption of $340 million in debt.
“By any measure, Panera has been one of the most successful restaurant companies in history: says Ron Shaich, Panera's founder, chairman and CEO. “What started as one 400-square-foot cookie store in Boston has grown to a system with over 2,000 units, approximately $5 billion in sales, and over 100,000 associates.” He adds that his company on Wednesday released preliminary same-store sales figures for the first quarter which come in 690 basis points higher than the industry average.
JAB's CEO, Olivier Goudet, says the JAB team have long admired Shaich “and the incredible success story he has created at Panera. I have great respect for the strong business that he, together with his management team, its franchisees and its associates, has built. We strongly support Panera's vision for the future, strategic initiatives, culture of innovation, and balanced company versus franchise store mix. We are excited to invest in and work together with the Company's management team and franchisees to continue to lead the industry.”
JAB is acquiring Panera through JAB BV, an investment vehicle of JAB Consumer Fund and JAB Holding Co. The deal, which is not subject to financing conditions, is expected to close during Q3, pending approval by Panera shareholders. Post-closing, Shaich and the other members of Panera's senior management will continue to run the company independently under its new ownership.
Along with Krispy Kreme, JAB's other US holdings include K-cup maker Keurig Green Mountain, which it acquired in 2015 for $13.9 billion, and the Caribou Coffee and Peet's Coffee & Tea chains. The Luxembourg-based JAB is the investment arm of Germany's Reimann family.
ST. LOUIS—After taking donut chain Krispy Kreme private last year for $1.35 billion, JAB has baked up an even bigger deal for Panera Bread Co. The all-cash merger is valued at about $7.5 billion, including the assumption of $340 million in debt.
“By any measure, Panera has been one of the most successful restaurant companies in history: says Ron Shaich, Panera's founder, chairman and CEO. “What started as one 400-square-foot cookie store in Boston has grown to a system with over 2,000 units, approximately $5 billion in sales, and over 100,000 associates.” He adds that his company on Wednesday released preliminary same-store sales figures for the first quarter which come in 690 basis points higher than the industry average.
JAB's CEO, Olivier Goudet, says the JAB team have long admired Shaich “and the incredible success story he has created at Panera. I have great respect for the strong business that he, together with his management team, its franchisees and its associates, has built. We strongly support Panera's vision for the future, strategic initiatives, culture of innovation, and balanced company versus franchise store mix. We are excited to invest in and work together with the Company's management team and franchisees to continue to lead the industry.”
JAB is acquiring Panera through JAB BV, an investment vehicle of JAB Consumer Fund and JAB Holding Co. The deal, which is not subject to financing conditions, is expected to close during Q3, pending approval by Panera shareholders. Post-closing, Shaich and the other members of Panera's senior management will continue to run the company independently under its new ownership.
Along with Krispy Kreme, JAB's other US holdings include K-cup maker Keurig Green Mountain, which it acquired in 2015 for $13.9 billion, and the Caribou Coffee and Peet's Coffee & Tea chains. The Luxembourg-based JAB is the investment arm of Germany's Reimann family.
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Paul Bubny
Paul Bubny is managing editor of Real Estate Forum and GlobeSt.com. He has been reporting on business since 1988 and on commercial real estate since 2007. He is based at ALM Real Estate Media Group's offices in New York City.
