Panera Bread declares SPAC funding, will return to the general public markets via an IPO

Florida, Spring Hill, Nature Coast Commons, shopping center, Panera Bread bakery.

Jeff Greenberg | Common Pictures Group | Getty Pictures

Panera Bread is getting ready to go public once more via an preliminary public providing.

The sandwich chain additionally introduced Tuesday it has secured an funding from Danny Meyer’s particular function acquisition firm, USHG Acquisition Corp. Shares of the SPAC climbed 8% in premarket buying and selling on the information.

Meyer stated he plans to put money into Panera as soon as it is public personally and thru his SPAC. Particular function acquisition firms don’t have any belongings however can use the proceeds from an IPO, mixed with financial institution financing, to purchase and take privately held client firms public. The funding in Panera is an uncommon deal for a SPAC, which is able to trade its shares for the sandwich chain’s inventory and survive the merger with Panera’s subsidiary Rye Merger, based on regulatory filings.

SPAC buyers can pull their cash out of the deal earlier than it is performed, so Panera’s present proprietor JAB Holding has agreed to speculate extra to offset redemptions. As soon as the deal is accomplished, Meyer will change into lead impartial director of Panera’s board.

Panera went personal in 2017 after JAB Holding purchased the corporate for $7.5 billion. As a privately held firm, the chain has stored investing in know-how, boosting its digital gross sales. Earlier this yr Panera unveiled a brand new restaurant design impressed by the pandemic’s modifications to client conduct.

Panera’s upcoming IPO is the newest in a string of modifications of JAB’s portfolio this yr. The corporate, which is the funding arm of the Reimann household, bought Au Bon Ache to a Yum Manufacturers franchisee earlier this yr. Below JAB’s possession, many Au Bon Ache areas had been transformed into Panera eating places, shrinking its footprint from roughly 300 areas to 171. Then, in July, Krispy Kreme went public once more after being owned by JAB since 2016.

Whereas Panera prepares to file its paperwork with the Securities and Alternate Fee, plenty of different restaurant firms have additionally opted to hitch the general public markets this yr, together with First Watch Restaurant Group and occasional chain Dutch Bros.

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