According to publications, JAB Holdings, which owns Krispy Kreme Doughnuts and Kenco coffee is set to give out $7.5 billion to acquire US bakery and sandwich chain Panera Bread Co(NASDAQ:PNRA).
The company which also wheels coffee brands Douwe Egberts and Peet’s, on top of the luxury shoe maker Jimmy Choo and beauty firm Coty.
On closing of the deal, this purchase will mark the largest US restaurant transaction.
A Luxembourg-based JAB Holdings, is owned by the famous Reimann family, which in 2016 paid $1.35 billionn for Krispy Kreme.
Panera’s was established almost 36 years ago, under the Au Bon Pain name, with one outlet in Boston. After the news Panera’s stock surged more than 14% on yesterday’s close. The firm took over Saint Louis Bread Company back in 1993, with 20 branches functional at the time. In 1997 it changed the chain’s name to Panera Bread.
Two year after changing its name Panera sold all its other businesses, including Au Bon Pain, to focus investment on Panera. Panera at the moment owns more than 2,000 restaurants across the US with almost 100,000 people working for it and has annual sales of $5 billion. The chains major focuses is healthier, additive-free foods.
Panera Bread Co(NASDAQ:PNRA)’s Founder and chairman Ron Shaich said: “Panera has been the best-performing restaurant stock of the past 20 years – up over 8,000%. Today’s transaction is a direct reflection of those efforts and delivers substantial additional value for our shareholders.”
In ana announcement both companies said that JAB will also undertake about $340m of Panera’s debt as a part on an agreement.
Meanwhile Olivier Goudet, chief executive of JAB, said: “We have long admired Ron and the incredible success story he has created at Panera. We strongly support Panera’s vision for the future, strategic initiatives, culture of innovation, and balanced company versus franchise store mix.”