Jab Holdings buys Panera Bread for $7.16 billion

Owner of Krispy Kreme Doughnuts and Caribou Coffee, Jab Holdings announced that it will buy bakery chain Panera Bread Co. (NASDAQ: PNRA) for $7.16 billion, excluding debt.  Panera Bread share value surged late Tuesday and reached a new all-time high on Wednesday of $312.98. 

Jab Holdings will take on almost $340 million of net debt.  The acquisition of Panera is second in history to Burger King’s $11.53 billion deal with Tim Hortons.  Jab has a huge inventory of food chains and coffee locations due to a number of acquisitions within the past few years which include, Keurig Green Mountain Inc. and Krispy Kreme Doughnuts. 

Panera has over 2000 bakery cafes that have adjusted to fresher ingredients that appeal to consumers who emphasize on eating healthier.  Panera Bread has reported earnings per share value that beat expectations for the last six quarters.

Panera Bread will join Jab Holdings as a private entity.

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