US: Krispy Kreme owner buys Panera Bread for $7B

By Barry Eitel SAN FRANCISCO (AA) – The investment firm that owns donut empire Krispy Kreme said Wednesday it will acquire chain restaurant Panera Bread for $7.5 billion. JAB Holding Company plans to make Panera a privately-held company and will pay investors $315 per share — a premium of about 30 percent above its average price in recent weeks. The deal could go through by the end of 2017, pending regulatory approval. Panera stock jumped about 14 percent to $312 in midday trading amid the news. Panera has been a publicly traded company for 25 years with 2,000 locations and approximately 100,000 employees, according to the company that was founded in 1987. The pastry-focused chain reports about $5 billion in sales annually. “Our success for shareholders is the byproduct of our commitment to long-term decision making and operating in the interest of all stakeholders, including guests, associates, and franchisees,” said Panera founder and CEO Ron Shaich in a statement. “We believe this transaction with JAB offers the best way to continue to operate with this approach. We are pleased to join with JAB, a private investor with an equally long-term perspective, as well as a deep commitment to our strategic plan.” JAB owns a string of breakfast and coffee chains alongside Krispy Kreme, including Peet’s Coffee & Tea, Einstein Bros. Bagels and Caribou Coffee Company. “We have long admired Ron and the incredible success story he has created at Panera,” JAB CEO Olivier Goudet said in the announcement. “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.” The deal follows several other big restaurant chain mergers in 2017. Private-equity firm Golden Gate Capital bought all 522 of Bob Evans Farms’ restaurants in January for $565 million and the parent company of Burger King, Restaurant Brands International, acquired fried chicken chain Popeyes Louisiana Kitchen in February for $1.8 billion. Last month, Darden Restaurants, which owns Olive Garden, agreed to acquire Chedder’s Scratch Kitchen and its 165 locations in 28 states for $780 million.