Panera Bread broadcasts SPAC funding, to go public via an IPO

A Panera Bread location in Spring Hill, Florida.

Jeff Greenberg | Common Photos Group | Getty Photos

Panera Bread goes public once more.

The guardian firm of the sandwich chain, Caribou Espresso and Einstein Bros. Bagels stated Tuesday it’s planning to file for an preliminary public providing. Panera Manufacturers additionally introduced it has secured an funding from Danny Meyer’s particular goal acquisition firm, USHG Acquisition Corp. Shares of the SPAC climbed 8% in morning buying and selling on the information.

Meyer stated he plans to spend money on Panera Manufacturers as soon as it is public personally and thru his SPAC. Particular goal acquisition corporations don’t have any property however can use the proceeds from an IPO, mixed with financial institution financing, to purchase and take privately held client corporations 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, in keeping with 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 take a position extra to offset redemptions.

“It is a good way to democratize the IPO course of so our HUGS shareholders are going to have a possibility to trade their shares, greenback for greenback, on the IPO value when Panera has its IPO,” Meyer stated on CNBC’s “Squawk on the Avenue.”

As soon as the deal is accomplished, Meyer will develop into lead impartial director of Panera’s board.

Panera went non-public in 2017 after JAB Holding purchased the corporate for $7.5 billion. As a privately held firm, the chain has stored investing in expertise, boosting its digital gross sales. Earlier this 12 months, Panera unveiled a brand new restaurant design impressed by the pandemic’s adjustments to client conduct.

Panera’s upcoming IPO is the most recent in a string of adjustments of JAB’s portfolio this 12 months. The corporate, which is the funding arm of the Reimann household, offered Au Bon Ache to a Yum Manufacturers franchisee earlier this 12 months. Underneath JAB’s possession, many Au Bon Ache places had been transformed into Panera eating places, shrinking its footprint from roughly 300 places 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 Trade Fee, quite a lot of different restaurant corporations have additionally opted to hitch the general public markets this 12 months, together with First Watch Restaurant Group and occasional chain Dutch Bros.

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