Krispy Kreme owner JAB Holding to acquire Panera Bread
The planned purchase by JAB, an investment vehicle of Austria’s billionaire Reimann family, steps up its challenge to Nestle SA and Starbucks Corp.in the coffee-shop business, giving it greater access to the lunch and dinner crowd. After closing at $274 a share yesterday, the stock soared to well over $300 in pre-market trading this morning. The yield on the 10-year Treasury note rose to 2.37 percent. In today’s statement, Goudet said that JAB supports this “company versus franchise store mix”.
In a statement Wednesday, Panera and JAB said they hope the deal would close in the third quarter of this year. However, Shaich said it would be easier to operate as a privately held company as he spends much of his time communicating with the public right now, and said that JAB would be a hands-off owner, leaving current management in place to run the business. Royal Bank of Canada restated an “outperform” rating and issued a $250.00 target price on shares of Panera Bread in a report on Friday, December 23rd.
Panera has about 2,000 bakery cafes throughout the United States and its fresh offerings appeal to health-conscious consumers.
It is interesting that Panera is agreeing to be taken over since it’s doing well.
Panera Bread gives the German firm another foothold in the US food service market.
Luxembourg-based JAB, the investment vehicle of Germany’s billionaire Reimann family, has snapped up several USA -based breakfast and coffee companies in recent years, including Krispy Kreme Doughnuts and K-cup coffee pod-maker Keurig Green Mountain Inc.
JAB also has non hospitality holdings, including popular shoe brand Jimmy Choo. Woolite and the Durex brand of condoms. In more than 25 years as a publicly traded company, Panera has created significant shareholder value. The first ETF to target the restaurant space launched in late 2015 under the symbol “BITE”, and then bit the dust on December 22 after failing to attract assets. It will be the North American restaurant industry’s second-largest acquisition after Burger King’s $11.53 billion deal for Canadian coffee and doughnut chain Tim Hortons. Darden Restaurants (NYSE: DRI), which owns chains like Olive Garden and LongHorn Steakhouse, recently disclosed that it plans to buy Cheddar’s Scratch Kitchen for $780 million and Oak Hill Capital Partners is slated to acquire Checkers Drive-In in a $525 million deal.