Panera Brands is reportedly exploring a sale of Caribou Coffee and Einstein Bros. Bagels, according to Reuters. The deal could be valued at more than $1.5 billion.
Reuters said Bank of America is running the sales process and that restaurant operators and private equity firms have shown interest in acquiring the chains. The transaction would also include Bruegger’s Bagels, Noah’s New York Bagels, and Manhattan Bagel. According to the publication, Panera wants a valuation 10 times its EBITDA of $150 million in 2024.
In August 2021, Panera, Caribou, and Einstein Bros. Bagels announced they would join forces under private equity backer JAB Holding Company to create Panera Brands, an innovative fast-casual platform. This partnership aimed to combine the strengths of each brand and capitalize on increasing demand for quality, convenience, and variety in fast-casual dining. By integrating operations and leveraging combined scale, the partnership looked to expand rapidly.
JAB Holding purchased Panera for $7.5 billion in 2017 and took it private. Caribou was acquired for $340 million in 2012, and Einstein Noah Restaurant Group was bought for $374 million in 2014.
Panera has approximately 2,200 stores in the U.S. Caribou has around 500 locations in the U.S. and Einstein Bros. Bagels has around 660 units.
Sources told the Financial Times in December 2023 that Panera Brands planned to go public this year. But this wasn’t the company’s first attempt. Following its formation, the group disclosed its intention to enter the public market through a merger with Danny Meyer’s special purpose acquisition company. The plan was abandoned due to unfavorable capital market conditions just before a July 1, 2022 deadline.
In May 2023, Panera Brands revealed that it rekindled its intentions to go public through an IPO, simultaneously announcing the transition of CEO Niren Chaudhary to the role of chairman. Jose Alberto Dueñas, formerly at the helm of Einstein Bros. Bagels, took over the CEO position. Subsequently, in September, Panera disclosed that Krispy Kreme CEO Mike Tattersfield would assume the chairman’s role in January, succeeding Chaudhary. Patrick Grismer, who served as Starbucks’ CFO for nine years, joined the board in 2022 and was appointed as the lead independent director.
