Einstein Noah to go private in $347 deal

Einstein Noah Restaurant Group has agreed to be taken private by JAB Holding Company, which also is the parent to Caribou Coffee, Peet’s Coffee & Tea, and several luxury brands like Jimmy Choo. One development to track as the operator or franchisor of Einstein Bros. Bagels moves forward under new ownership is whether JAB looks to co-locate its new bagel brand with its coffee chains. Caribou Coffee to date has opened four locations co-branded with Bruegger’s Bagels and has said publicly that the partnership helped it expand dayparts and build sales. Here is a look at the deal by the numbers: $347 million: The total equity value of the transaction. JAB Holding Company will pay $20.25 per share of Einstein Noah’s outstanding stock, which represents a 47-percent premium over the 30-day average trading price of Einstein Noah’s shares. Compared with other recent going-private transactions in the restaurant industry, Einstein Noah’s ranks on the lower end of the spectrum. Earlier this summer, Red Lobster was spun off from Darden Restaurants to Golden Gate Capital LP for $2.1 billion. The other recent 10-figure deal in the restaurant space was Centerbridge Partners LP’s $1.1 billion acquisition of P.F. Chang’s China Bistro Inc. in July 2012. JAB bought Caribou Coffee in December 2012 for about this same price it paid for Einstein Noah, paying about $340 million, which represented a 30-percent premium on Caribou’s stock price at the time. Benihana’s going-private transaction in May 2012 fetched $296 million from private-equity firm Angelo, Gordon & Co. A few months earlier, in February 2012, Morton’s Restaurant Group Inc. was taken private in a $116.6 million acquisition by Landry’s Inc. 35 percent: The ownership stake in Einstein Noah held by Greenlight Capital, the brand’s largest shareholder. Greenlight has agreed to tender its shares in support of the transaction. According to Einstein Noah’s statement, following the completion of this tender offer, JAB will acquire all remaining shares not tendered through a second-step merger at the same price as in the tender offer. 855: The number of bagel restaurants Einstein Noah operates or franchises under the Einstein Bros., Noah’s New York Bagels and Manhattan Bagel brands. The system spans 42 states and the District of Columbia. 14: The number of days Frank Paci has served as chief executive of Einstein Noah Restaurant Group. The former chief executive of McAlister’s Deli officially assumed his role Sept. 15.