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

Panera Bread is going public all over again.

The mum or dad enterprise of the sandwich chain, Caribou Coffee and Einstein Bros. Bagels reported Tuesday it is planning to file for an first public supplying. Panera Brands also announced it has secured an investment from Danny Meyer’s special reason acquisition business, USHG Acquisition Corp. Shares of the SPAC climbed 8% in morning investing on the information.

Meyer mentioned he options to spend in Panera Makes once it is really public individually and by way of his SPAC. Unique function acquisition firms have no property but can use the proceeds from an IPO, mixed with lender financing, to obtain and get privately held consumer organizations community. The financial investment in Panera is an uncommon deal for a SPAC, which will exchange its shares for the sandwich chain’s stock and endure the merger with Panera’s subsidiary Rye Merger, in accordance to regulatory filings.

SPAC traders can pull their money out of the offer prior to it truly is performed, so Panera’s recent operator JAB Holding has agreed to make investments far more to offset redemptions.

“It really is a excellent way to democratize the IPO approach so our HUGS shareholders are likely to have an opportunity to exchange their shares, greenback for dollar, at the IPO cost when Panera has its IPO,” Meyer reported on CNBC’s “Squawk on the Street.”

The moment the offer is concluded, Meyer will grow to be direct independent director of Panera’s board.

Panera went personal in 2017 after JAB Holding purchased the corporation for $7.5 billion. As a privately held business, the chain has kept investing in technology, boosting its electronic income. Before this calendar year, Panera unveiled a new cafe design and style impressed by the pandemic’s improvements to client habits.

Panera’s impending IPO is the latest in a string of variations of JAB’s portfolio this calendar year. The enterprise, which is the investment arm of the Reimann family, bought Au Bon Agony to a Yum Manufacturers franchisee earlier this yr. Under JAB’s ownership, several Au Bon Suffering locations have been converted into Panera dining places, shrinking its footprint from about 300 destinations to 171. Then, in July, Krispy Kreme went community all over again right after staying owned by JAB since 2016.

Whilst Panera prepares to file its paperwork with the Securities and Exchange Commission, a amount of other cafe corporations have also opted to sign up for the general public marketplaces this 12 months, like Very first Check out Restaurant Team and espresso chain Dutch Bros.