Panera Bread joins Krispy, Caribou & Einstein Bros
Steve’s breakdown: Lots of brands now live at JAB Holding and that now includes Panera Bread. Panera has been doing very well with messaging but who knows what a new owner will do. One thing is given, if you can execute for less than they are now, you’ll be get a shot.
SAINT LOUIS, MO: JAB, which owns Krispy Kreme, Caribou Coffee and other enterprises, is purchasing the Panera Bread Company for $315 per share in cash — a premium of roughly 30 percent over its recent average trading price. The transaction is valued at around $7.5 billion, Panera said Wednesday.
If the transaction is finalized in the third quarter of 2017 as planned, Panera would be privately held.
News of the merger brought a spike in Panera’s stock price. After closing at $274 a share yesterday, the stock soared to well over $300 in pre-market trading this morning.
Panera says its board of directors has unanimously approved the definitive merger agreement with JAB.
Panera has seen exceptional growth since the early 1990s, when it was created by the founders of Au Bon Pain in the wake of their purchase of the 20-store Saint Louis Bread Company. Those founders, Louis Kane and Ron Shaich, eventually sold off Au Bon Pain to focus on Panera. The bread-centric café chain says it now has more than 2,000 locations, some $5 billion in sales, and more than 100,000 employees.
In addition to Krispy Kreme, JAB owns coffee and breakfast companies from Jacobs Douwe Egberts and Peet’s Coffee & Tea to Einstein Bros. Bagels.