One of the world's biggest bagel companies is going private.
Investment group JAB Holding Company announced on Monday that it is acquiring the Einstein Noah Restaurant Group for approximately $364.5 million. The company – which traded on the NASDAQ under the stock symbol BAGL – owns Einstein Bros. Bagels, Noah's New York Bagel and Manhattan Bagel, in addition to running a dough production facility.
JAB is paying Einstein stockholders $20.25 per share, a 51 percent premium on its Friday closing price of $13.39. Shares were up more than 50 percent on Monday, hovering at $20.15 at 1:30 p.m. ET.
"For more than a decade, we have worked closely with the Einstein Noah Restaurant Group to execute a turnaround plan, reducing debt and expanding its store footprint," David Einhorn, president of Greenlight Capital, said in a statement. "JAB is an experienced firm that will lead Einstein Noah Restaurant Group into its next phase of growth.”
Greenlight Capital is Einstein’s largest stockholder, with more than 35 percent of outstanding shares. The hedge fund has agreed to tender its shares in support of the buyout.
Einstein will join a portfolio that contains a number of other fast-casual food and beverage companies. JAB also holds the majority stake in Peet's Coffee & Tea Inc., Caribou Coffee, and international coffee and tea company D.E. Master Blenders 1753. Michael Tattersfield, CEO of Caribou Coffee, will serve as chairman.
Einstein's three bagel chains operate 855 restaurants in 42 states. In August, the company posted total revenues of approximately $112 million in the second quarter, an increase of 4.1 percent from the same quarter a year ago.
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