Panera Bread broadcasts SPAC funding, to go public by means of an IPO

Panera Bread is getting ready to go public once more by means of an preliminary public providing.

The sandwich chain additionally introduced Tuesday it has secured an funding from Danny Meyer’s particular goal acquisition firm, USHG Acquisition Corp. Shares of the SPAC climbed 8% in premarket buying and selling on the information.

Meyer mentioned he plans to put money into Panera as soon as it is public personally and thru his SPAC. Particular goal acquisition firms don’t have any belongings however can use the proceeds from an IPO, mixed with financial institution financing, to purchase and take privately held client firms public. The funding in Panera is an uncommon deal for a SPAC, which can alternate its shares for the sandwich chain’s inventory and survive the merger with Panera’s subsidiary Rye Merger, in accordance with regulatory filings.

SPAC buyers can pull their cash out of the deal earlier than it is carried out, so Panera’s present proprietor JAB Holding has agreed to take a position extra to offset redemptions. As soon as the deal is accomplished, Meyer will turn into lead impartial director of Panera’s board.

Panera went non-public in 2017 after JAB Holding purchased the corporate for $7.5 billion. As a privately held firm, the chain has stored investing in expertise, boosting its digital gross sales. Earlier this 12 months Panera unveiled a brand new restaurant design impressed by the pandemic’s modifications to client conduct.

Panera’s upcoming IPO is the most recent in a string of modifications of JAB’s portfolio this 12 months. The corporate, which is the funding arm of the Reimann household, bought Au Bon Ache to a Yum Manufacturers franchisee earlier this 12 months. Beneath JAB’s possession, many Au Bon Ache places have been transformed into Panera eating places, shrinking its footprint from roughly 300 places to 171. Then, in July, Krispy Kreme went public once more after being owned by JAB since 2016.

Whereas Panera prepares to file its paperwork with the Securities and Change Fee, a variety of different restaurant firms have additionally opted to hitch the general public markets this 12 months, together with First Watch Restaurant Group and low chain Dutch Bros.