Peet’s Parent To Pay $374 Million For Einstein Noah

The competition in the breakfast market, the hottest segment in foodservice, continues to percolate. Einstein Noah Restaurant Group, whose bagel empire includes Einstein Bros. Bagels, Noah’s New York Bagels and Manhattan Bagel, announced Sept. 29 that it will be sold to JAB Holding Co. for about $374 million.

JAB, a German conglomerate formerly called Joh. A. Benckiser, already controls a three-concept coffee empire. In separate deals in 2012 and 2013, it acquired Peet’s Coffee & Tea, Caribou Coffee and D.E Master Blenders. Einstein Noah’s three concepts operate, franchise and license more than 855 restaurants in 42 states and the District of Columbia, along with a dough-production facility.

If the deal closes, Einstein Noah will remain headquartered in Lakewood, Colo., and will operate as a stand-alone business in the JAB portfolio. Michael Tattersfield, CEO of Caribou Coffee, would become Einstein Noah’s chairman.

The bagel maker’s board has approved the transaction, which remains subject to a majority of investors tendering their shares. Einstein Noah’s largest shareholder, David Einhorn, who holds more than a 35% stake in the company, supports the deal.