Business

Panera Bread terminates SPAC deal with Danny Meyer’s investment team

Florida, Spring Hill, Nature Coast Commons, mall, Panera Bread.

Jeff Greenberg | Universal Image Group | beautiful pictures

Danny Meyer’s SPAC and Panera Bread have canceled an agreement to bring the bakery chain to market again, citing market conditions.

In November, the sandwich chain’s parent company, Caribou Coffee and Einstein Bros. announced it is preparing to go public and has secured an investment from Buyback USHGMeyer’s Special Purpose Acquired Company.

It was an unusual arrangement for a SPAC, which typically uses bank financing and proceeds from an initial public offering to take private companies public. The planned deal would exchange shares of USHG Acquisition for shares of the sandwich chain and allow the company to survive a merger with Panera subsidiary Rye Merger.

At the time of the deal, SPACs were still booming, supported by eager investors who liked their accessibility, and the broader market was still at a premium. But famous busts and regulatory threats have made SPACs less popular, while the war in Ukraine, soaring inflation and recession fears have led many companies to delay plans to go public.

The merger must be completed by Thursday, or else either party is free to close the deal. On Friday, Panera sent written notice to USHG that it would terminate the agreement after the deadline had passed, according to a regulatory filing.

“Based on current capital market conditions, an initial public offering for Panera is unlikely in the near term, and so we have agreed not to renew the partnership later. The current expiration date is June 30,” Meyer said in a statement.

The Shack Shack The founder added that his SPAC will continue to look for suitable investments.

Panera went public in 2017 after JAB Holding bought the company for $7.5 billion. As a privately held company, the chain has continuously invested in technology, driven digital sales, and maintained its reputation as a leader in the restaurant industry.

The termination of the contract is a blow to JAB, which has slashed its portfolio over the past year. The company, which is the investment arm of the Reimann family, Sell ​​Au Bon Pain to one Brand Yum franchisee last June. Under JAB ownership, many of Au Bon Pain’s locations were converted into Panera restaurants, shrinking its footprint from around 300 locations to 171. Then, in July, Krispy Kreme went public again after being owned by JAB since 2016.

Source link

news7h

News7h: Update the world's latest breaking news online of the day, breaking news, politics, society today, international mainstream news .Updated news 24/7: Entertainment, Sports...at the World everyday world. Hot news, images, video clips that are updated quickly and reliably

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button