St. Louis — Panera Bread Company and JAB have entered into a definitive merger agreement under which JAB will acquire Panera for approximately $7.5 billion. The agreement has been unanimously approved by Panera's board of directors.
"By any measure, Panera has been one of the most successful restaurant companies in history,” says Panera’s founder, chairman and CEO, Ron Shaich. “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. In more than 25 years as a publicly traded company, Panera has created significant shareholder value. Indeed, 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."
"We have long admired Ron and the incredible success story he has created at Panera,” adds JAB’s partner and CEO, Olivier Goudet. “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."
The transaction is not subject to a financing condition and is expected to close during the third quarter of 2017, subject to the approval of Panera shareholders and the satisfaction of customary closing conditions, including applicable regulatory approvals.
Following the close of the transaction, Panera will be privately held and continue to be operated independently by the company's management team. For more information, visit panerabread.com.
JAB is acquiring Panera through JAB BV, an investment vehicle of JAB Consumer Fund and JAB Holding Company. Together, JAB Holding Company and JAB Consumer Fund have controlling stakes in Peet's Coffee & Tea, a premier specialty coffee and tea company; Caribou Coffee Company, a specialty retailer of high-quality premium coffee products; Einstein Noah Restaurant Group, Inc., a leading company in the quick-casual segment of the restaurant industry; Krispy Kreme Doughnuts, a global specialty retailer and wholesaler of premium-quality sweet treats; and in Espresso House, the largest branded coffee shop chain in Scandinavia. For more information, visit http://www.jabholco.com.
SOURCE: Panera Bread Company