JAB Holdings expands its Coffee & Breakfast brand through Panera Bread Acquisition

Unknowingly, we tend to use the words ‘need’ and ‘want’ in everyday conversations as synonyms. There is a great difference between the meaning and the context of these words. Especially in the case of food, it was initially just a need for the survival of humans. Currently, it is more of a want for a majority of people across the globe. Keeping the demands of the customers in mind, various international food chains are expanding to make the most of these demands. Another company has made a major acquisition in order to widen its horizon. The news suggests that JAB Holdings Panera Bread acquisition will happen at a jaw-dropping amount of $7.5 billion.

JAB Holdings is the owner of beverage franchises such as Caribou Coffee and Peet’s Coffee & Tea. It aims to develop its brand even further and turn it into a coffee and breakfast empire. This is a smart move as the demand for coffee is always on the rise. As life gets more stressful and hectic for mankind, he will increase the intake of caffeine to keep up with the pace. Also, the working hours of professionals are not as comfortable as they used to be. Therefore numerous individuals grab a quick breakfast on their way to work which is filling as well as lip-smacking. JAB Holdings aims to target such an audience for which the Panera Bread acquisition will take place.

Panera Bread acquisition

JAB Holdings is acquiring Panera Bread in a deal worth $7.5 billion.

Further details about the Panera Bread acquisition

The deal between JAB Holdings and the U.S. bakery chain Panera Bread has been finalized at the value of $7.5 billion which also includes the pending debt of the company. JAB Holdings announced on Wednesday that it has offered $315 in cash to Panera Bread per share. This price is a 20.3 percent premium in comparison to the bakery chain’s stock closing price on 31st March 2017. The stock price is calculated from this day as it was the last trading day before rumors of the Panera Bread acquisition were out.

As news about the potential deal spread out in the market, Panera Bread’s shares rose about 4.6 percent after March 31. It closed on Tuesday at the price of $274. After this, its stock price increased by another 13 percent to $309.49 during the premarket training on Wednesday. Currently, Panera Bread has 2,000 bakery-cafes across the states of the U.S. which might expand further once the procedure of the deal is over. Its latest menu offers appealing products to health-conscious customers. JAB Holdings showed a keen interest in the Panera Bread acquisition as it has had exceptional earnings per share for the last six quarters.

Avatar
Carrie Ann
Carrie Ann is Editor-in-Chief at Industry Leaders Magazine, based in Las Vegas. Carrie covers technology, trends, marketing, brands, productivity, and leadership. When she isn’t writing she prefers reading. She loves reading books and articles on business, economics, corporate law, luxury products, artificial intelligence, and latest technology. She’s keen on political discussions and shares an undying passion for gadgets. Follow Carrie Ann on Twitter, Facebook

Recent Posts

Netflix first quarter result shows slower subscriber growth

Netflix first quarter result shows slower subscriber growth

Netflix reported a sharp downfall in the number of new subscribers for its first-quarter results of 2021. The streaming service added just 4 million users in the new quarter, a sha
4 hours ago
TikTok sued for billions over children’s data concerns

TikTok sued for billions over children’s data concerns

This is not the first time that TikTok is in hot waters for its dubious data collection policies. In 2019, the app, owned by Chinese company ByteDance, was fined an astounding $5.7
5 hours ago
Herman Miller acquires Knoll for $1.8 billion

Herman Miller acquires Knoll for $1.8 billion

Furniture design giant Herman Miller, Inc. announced its $1.8 billion acquisition of competitor Knoll Inc. on Monday. The acquisition comes at a time when the world is undergoing a
1 day ago
What to expect from Apple’s Spring Loaded Event on April 20

What to expect from Apple’s Spring Loaded Event on April 20

On April 20, Apple CEO Tim Cook will take the stage to walk us down memory lane. The company’s ‘Spring Loaded’ event on Tuesday will usher in the launch of Apple’s next-gen
1 day ago
Facebook’s Clubhouse clone to launch in summer

Facebook’s Clubhouse clone to launch in summer

Facebook Inc. on Monday announced it will launch several audio-centric products that can help it compete against Clubhouse, an audio-only chatting app that exploded in popularity d
1 day ago
IBM revenue beats estimates, buoyed by cloud strength

IBM revenue beats estimates, buoyed by cloud strength

During IBM’s earnings call with analysts, Krishna said he knew that the January transformation in IBM’s strategy to invite more ecosystem partners would “take time for result
1 day ago