Einstein Noah Restaurant Group Sold to JAB Holding Company for $374 Million

By Frazer Jones
Another week, another acquisition. Todays merger deal involves the small bagel empire Einstein Noah Restaurant Group, parent company to bagel-based QSR...

Another week, another acquisition. Today’s merger deal involves the small bagel empire Einstein Noah Restaurant Group, parent company to bagel-based QSR franchises Einstein Bros Bagels and Manhattan Bagel, along with the fully company-owned chain Noah’s New York Bagels. According to a press release issued today by Einstein Noah Restaurant Group, the business has agreed to be acquired by German private equity firm JAB Holding Company for $20.25 per share in cash – that’s a 47 percent premium over the brand’s average that values the company at approximately $374 million, to the satisfaction of the brand’s current stockholders:

“Through this transaction with JAB, which has a long and distinguished track record of investing in premium consumer companies, we will not only realize significant immediate value for our stockholders, but will continue to revitalize our brand, enhance our nationwide footprint and solidify our position as the leader in the fresh-baked bagels industry,” said Nelson Heumann, Chairman of the Board of Einstein Noah Restaurant Group. “Over the past few years, our dedicated employees have helped enhance our strong and growing brand leadership, and with JAB’s backing, we expect to build upon our success and position as a category leader.”


Equity firm JAB Holding Company is perhaps better known by its former name, Joh. A. Benckiser, and is a parent company to several other breakfast-related brands including Peet’s Coffee & Tea and Caribou Coffee. That history makes the two businesses a good fit, as JAB chief executive officer Olivier Goudet explains in Einstein Noah’s media release:

“Einstein Noah Restaurant Group has a great collection of brands that reflect JAB’s long-term investment philosophy and we see significant opportunity for growth,” said Olivier Goudet, Partner and CEO of JAB. “We welcome Einstein Noah Restaurant Group and its employees to the JAB family, and we are excited to be a part of the next chapter of its growth.”


According to the release, Einstein Noah Restaurant Group’s largest stockholder to date has been Greenlight Capital who worked to build up the brand into a desirable entity. The investment group has offered its full support of the JAB takeover to help develop Einstein Noah’s brands even further:

“Greenlight supports this transaction, which we believe delivers significant value to Einstein Noah Restaurant Group stockholders and is a win-win for all parties," said David Einhorn, founder and president of Greenlight Capital, Einstein Noah Restaurant Group’s largest stockholder. "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. JAB is an experienced firm that will lead Einstein Noah Restaurant Group into its next phase of growth.”


Tax inversion has been a hot topic in the industry recently, and it’s hard not to think of it when a United States-based company and a foreign company enter into an acquisition deal. But much like last week’s Pabst Brewing Company buyout, Einstein Noah Restaurant Group will remain headquartered in Colorado and will operate as a standalone business as terms of the acquisition. 


Featured Articles

Cargill Seals Wind & Solar Renewable Energy Deals

Cargill, the food and agriculture multinational in Renewable energy move, as it seals five wind and solar power deals to reduce its GHG emisions

McKinsey: Sustainable Farming Needs Industry Investment

McKinsey survey of US farmers shows take-up of sustainability practices remains low, and calls for industry involvement to encourage agritech investment

Mars Wrigley 'Fanatical' about Sustainability – CPO Davies

Mars Wrigley Chief Procurement and Sustainability Officer Amanda Davies on how it excels in strategic sourcing and is 'fanatical' about sustainability

McKinsey: Inflation Hurting European Grocery Sector


Mars and FAO Food Safety Partnership Targets Mycotoxins


Kraft Heinz Eyes $170mn US Government Net Zero Grant