Sat. Nov 27th, 2021

Panera Brands, the informal dining group owned by the German conglomerate JAB Holdings, has acquired an investment from restaurateur Danny Meyer’s special purpose procurement company as he plans to return to the public market.

Panera, whose chains include Panera Bread, Einstein Bros Bagels and Caribou Coffee, said Tuesday it will list on the New York Stock Exchange through a traditional IPO. The Union Square Hospitality Group Spac, a blank check company run by Meyer, will become a cornerstone investor in the IPO.

Shares in the USHG Spac rose 8 percent in early New York trading on Tuesday. The size of Panera’s IPO has not been disclosed. The USHG Spac is worth $ 287 million.

JAB, the private investment group that manages the wealth of Germany’s billionaire Reimann family, took Panera Bread privately in 2017 for $ 7.5 billion, after more than 25 years as a public company.

JAB bought Einstein Bros Bagels and Caribou Coffee in 2014 and 2013 respectively. The three companies were brought under the Panera Brands name this year.

Panera’s planned transaction is the latest by an informal dining company held by JAB, which has been listed on the stock exchange as the group makes money from booming stock markets. Earlier this year, donut necklace Krispy Kreme went public in the US and last year JAB-listed coffee group JDE Peet’s in Amsterdam for € 2.25 billion.

In addition to the Spac investment, Meyer, who founded the Shake Shack burger chain, will also personally invest in the company once it is listed on the New York Stock Exchange.

Meyer’s planned use of his Spac to invest in a publicly traded company is similar to a controversial move attempted by hedge fund billionaire earlier this year Bill Ackman.

Ackman tried to use funds from his Spac to takes a $ 4 billion stake in Universal Music Group, but this falling apart after regulators at the U.S. Securities and Exchange Commission questioned the unconventional structure.

Spacs is looking for a private company to take public and raise money in the stock market. They have become Wall Street’s hottest investment product in recent years, but are staring to fall in favor of investors redemptions rise and share prices fainter.

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