NEW YORK, July 19 (Reuters) – Panera Brands is exploring a sale of Caribou Coffee and Einstein Bros Bagels, as well as its other bagel brands, in a deal that could value the restaurant chains at more than $1.5 billion, according to people familiar with the matter. #PaneraCoffeeSale
St. Louis-based Panera Brands has engaged Bank of America to oversee the sale process for its brands. Additionally, other restaurant operators and private equity firms are interested in bidding for these assets.
In addition to Einstein Bros, Panera is looking to sell Bruegger’s Bagels, Noah’s New York Bagels and Manhattan Bagel, said the sources, who requested anonymity because the discussions are confidential.
Panera Brands, JAB and Bank of America all declined to comment.
The latest move marks a reversal for Luxembourg-based JAB, which combined Panera Bread, Caribou Coffee and the bagel brands into the Panera Brands group in 2021.
Panera is hoping to command a valuation for the combined coffee and bagels businesses equivalent to more than 10 times their expected earnings before interest, taxes, depreciation and amortization of nearly $150 million in 2024, the sources said. #PaneraCoffeeSale
Minneapolis-based Caribou Coffee has more than 800 locations in 11 countries. The bagel brands have almost 1,000 locations across the U.S.
JAB had been laying the groundwork for an initial public offering of Panera Brands over the past year, one of the sources said, adding that it could pursue a listing of the remaining Panera Bread unit if the talks to divest the coffee and bagel chains are successful. Panera Bread generates a majority of the group’s revenues.
Additionally, as the Panera coffee sale discussions progress, the company is also evaluating potential buyers who could align with its strategic goals.
