June 4, 2023

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Panera Bread announces SPAC investment, to go public through an IPO

Florida, Spring Hill, Nature Coastline Commons, searching shopping mall, Panera Bread bakery.

Jeff Greenberg | Common Visuals Team | Getty Images

Panera Bread is going community again.

The parent enterprise of the sandwich chain, Caribou Espresso and Einstein Bros. Bagels mentioned Tuesday it is scheduling to file for an original public giving. Panera Brand names also introduced it has secured an investment decision from Danny Meyer’s unique reason acquisition corporation, USHG Acquisition Corp. Shares of the SPAC climbed 8% in early morning investing on the information.

Meyer claimed he options to make investments in Panera Models when it’s community individually and via his SPAC. Particular purpose acquisition businesses have no property but can use the proceeds from an IPO, mixed with financial institution financing, to invest in and choose privately held client firms public. The financial investment in Panera is an unconventional offer for a SPAC, which will exchange its shares for the sandwich chain’s inventory and endure the merger with Panera’s subsidiary Rye Merger, according to regulatory filings.

SPAC traders can pull their dollars out of the deal right before it really is performed, so Panera’s latest owner JAB Holding has agreed to spend additional to offset redemptions.

“It’s a wonderful way to democratize the IPO procedure so our HUGS shareholders are going to have an possibility to exchange their shares, greenback for greenback, at the IPO price tag when Panera has its IPO,” Meyer said on CNBC’s “Squawk on the Street.”

After the offer is finished, Meyer will turn out to be direct impartial director of Panera’s board.

Panera went personal in 2017 just after JAB Keeping purchased the organization for $7.5 billion. As a privately held business, the chain has stored investing in engineering, boosting its electronic sales. Earlier this calendar year, Panera unveiled a new cafe design and style inspired by the pandemic’s alterations to buyer behavior.

Panera’s forthcoming IPO is the hottest in a string of alterations of JAB’s portfolio this calendar year. The firm, which is the investment decision arm of the Reimann family members, marketed Au Bon Soreness to a Yum Manufacturers franchisee previously this year. Underneath JAB’s possession, numerous Au Bon Suffering locations were being transformed into Panera restaurants, shrinking its footprint from around 300 destinations to 171. Then, in July, Krispy Kreme went public all over again following getting owned by JAB considering that 2016.

While Panera prepares to file its paperwork with the Securities and Trade Commission, a amount of other cafe organizations have also opted to be part of the public markets this 12 months, including Initial View Restaurant Group and espresso chain Dutch Bros.