Krispy Kreme owner JAB Holdings to buy Pret A Manger for £1.5bn

UK-based sandwich shop chain, Pret A Manger, is to be sold to the German-controlled investment company behind Krispy Kreme doughnuts for £1.5bn ($1.9bn).

Private equity firm Bridgepoint, who bought Pret A Manger for £364mn ($482) a decade ago, has sold the British sandwich and coffee chain to JAB Holdings, the American investment firm behind Krispy Kreme doughnuts.

Pret A Manger chief executive, Clive Schlee, said: "This is a day of celebration at Pret.

"This agreement recognises the hard work of all our amazing teams around the world. Bridgepoint has been wonderful owners of the business for more than a decade.

"All of us at Pret believe JAB will be excellent long-term strategic owners. JAB believes in Pret's values and supports our growth plans."

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The Pret A Manger deal is the latest in a string of coffee and drink-focused acquisitions by JAB Holdings.

Earlier this year, the investment firm announced that it had bought Dr Pepper Snapple for $18.7bn, to combine it with its Keurig Green Mountain coffee business.

Through the Pret A Manger deal, every one of the sandwich shops employees is to be gifted a £1,000 payout to thank them for their hard work

Olivier Goudet, JAB partner and chief executive, added: "We're very excited to partner with Pret and its talented team to continue their extraordinary growth story.

"Management's proven track record and commitment to customer service, investment in innovation and approach to freshly prepared food position Pret well as it capitalises on evolving consumer taste and lifestyle preferences.

"We look forward to working with Clive Schlee and his management team while promoting the Pret brand and supporting Pret's impressive culture for the next phase in the company's growth with JAB."