JAB Holding Co. is taking Einstein Noah Restaurant Group Inc. (Nasdaq: BAGL) private in a $374 million deal.
Einstein, headquartered in Lakewood, Colorado, owns the Einstein Bros. Bagels, Noah's New York Bagels and Manhattan Bagel brands. The bagel companies sell bagels, coffee and sandwiches through restaurant franchises.
The purchase price works out to $20.25 per share in cash. Einstein's shares closed at $13.39 on Friday, Sept. 26, before the deal was announced. The morning the transaction was disclosed, the company's shares were trading at around $20.14. The company's biggest shareholder, Greenlight Capital, supports the deal.
JAB is a holding company that invests in consumer companies. Chicago merchant bank BDT Capital Partners is making a minority investment in the company.
BDT & Co. served as co-adviser, with Citigroup Global Markets Inc., to JAB on the deal. Skadden Arps Slate Meagher & Flom LLP is advising JAB on the deal.
Other recent franchise deals include NPC International Inc.'s acquisition of 56 Wendy's restaurants in June, and Bain Capital's purchase of Retail Zoo in May. For more, see Debt Markets Nourish Restaurant M&A.