Tuesday 24th October, 2017
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Krispy Kreme owner pays $7.5bn for Panera Bread chain

Krispy Kreme owner pays $7.5bn for Panera Bread chain

The owner of Krispy Kreme Doughnuts and Kenco coffee will pay $7.5bn (£6bn) to take control of US bakery and sandwich chain Panera Bread.
 
JAB Holdings also controls coffee brands Douwe Egberts and Peet’s, as well as the luxu­ry shoe maker Jimmy Choo and beauty firm Coty.
 
The acquisition is the biggest US restaurant deal, according to S&P Global Market Intelli­gence.
 
Shares in Panera jumped nearly 14% on the announce­ment.
 
JAB, a Luxembourg-based investment firm, is owned by the billionaire Reimann family, which paid $1.35bn for Krispy Kreme last year.
 
Panera started 30 years ago with one outlet in Boston and now has more than 2,000 res­taurants across the US. It em­ploys about 100,000 people and has annual sales of $5bn.
 
The chain focuses on health­ier, additive-free foods.
 
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.”
 
JAB will also take on about $340m of Panera’s debt, the companies said.
 
It is paying 41 times earn­ings to take control of Panera - a very hefty premium the lev­el of which is more common in the technology sector.
 
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.” 
 
(BBC News)

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