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JAB Holding Company affiliate to acquire Einstein Noah Restaurant Group for $374 million

An affiliate of JAB Holding Company will acquire Einstein Noah Restaurant Group for approximately $374 million.

September 29, 2014

An affiliate of JAB Holding Company will acquire Einstein Noah Restaurant Group for approximately $374 million.

"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, in a company press release. "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."

At the close of the transaction, Einstein Noah Restaurant Group will maintain its headquarters in Lakewood, Colorado, and will continue to operate as a standalone business in the JAB portfolio.

Michael Tattersfield, CEO of Caribou Coffee Company Inc., another JAB portfolio company, will serve as chairman of the board.

"I am looking forward to working with the Einstein Noah Restaurant Group's talented executive team. Having worked in and around the food industry for many years, I have long admired the Einstein Noah Restaurant Group's strong market position and growth potential, and I am looking forward to contributing to the company's continued success," he said in the release.

Under the terms of the merger agreement, an affiliate of JAB will commence a tender offer to acquire all of the outstanding shares of Einstein Noah Restaurant Group's common stock at a price of $20.25 per share in cash. Greenlight Capital, Einstein Noah Restaurant Group's largest stockholder with more than 35 percent of the outstanding common shares, has agreed to tender its shares in support of the transaction. Following the successful completion of the tender offer, JAB will acquire all remaining shares not tendered in the offer through a second-step merger at the same price as in the tender offer.

BDT Capital Partners is a minority investor in this transaction alongside JAB.