Market Overview

JAB Buys Panera; Analyst Foresees Near-Term Slowdown In Restaurant M&A

JAB Buys Panera; Analyst Foresees Near-Term Slowdown In Restaurant M&A

JAB Holdings Co., a private European company whose portfolio includes Keurig Green Mountain, Caribou Coffee Co. and Peet’s Coffee & Tea, confirmed Wednesday its imminent acquisition of Panera Bread Co (NASDAQ: PNRA) for $315 per share.

At least one analyst thinks the $7.5 billion deal may trigger a slowdown in restaurant mergers.

When asked if he predicts additional M&A activity in the sector, Longbow analyst Alton Stump told Benzinga, "It's certainly a possibility, but perhaps not in near-term as two main buyers (JAB and Restaurant Brands International Inc (NYSE: QSR)) digest pending acquisition."

Prior to Wednesday's announcement, rumors circulated of M&A consideration by Starbucks Corporation (NASDAQ: SBUX) and Domino's Pizza, Inc. (NYSE: DPZ), the latter of which denied any interest Tuesday.

After closing down 3 percent Tuesday, Panera was trading up 7.3 percent in Wednesday's pre-market session. With an $18.55 boost, shares were valued around $292.55.

JAB Holdings is expected to remove Panera from public exchange, just as it did with its May purchase of Krispy Kreme Doughnuts.

Nick Donato contributed reporting.

Related Links:

What Do Wall Street Analysts Think Of The Panera Up-For-Sale Report?

A Panera Sale Is Far From Certain, And Any Potential Deal Will Face Challenges

JAB Holdings Thinks It Could Compete With Starbucks

Image: Mike Mozart, Flickr


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