Pret A Manger's private equity owner has agreed to sell the £ 1.5bn UK-based sandwiches to JAB Holdings, a private investment group that acquires beverage giant Nestlé by joining forces quickly acquired by the coffee market. 19659002] The purchase price of £ 1.5 billion is inclusive of debt, said three people with direct knowledge of the transaction. The grab-and-go sandwich shop confirmed the sale in a Tuesday announcement. The upcoming acquisition was first announced by the Financial Times.
The sale will mean a lucrative exit for Pret's owner Bridgepoint, the British private equity group, which originally paid £ 364 million including debt for the purchase of the company a decade ago.
The London-based company had examined a listing by Pret, but decided it could be priced better by selling it. The deal estimates Pret at around 1
It's also the latest in a series of coffee and beverage focus acquisitions by JAB, which in January made a deal to acquire Dr Pepper Snapple, the fifth largest carbonated beverage company in the world, for $ 18.7 billion in cash and combined it with his Keurig Green Mountain coffee shop.
Coffee is one of the fastest growing consumer goods companies, especially in the United States, the largest coffee market in the world.
Clive Schlee, CEO of Pret, announced that his company posted like-for-like sales growth in 2017 for the ninth year in a row.
Olivier Goudet, JAB Partner and Chief Executive, said his company will do this. They will continue to benefit from management's "proven track record" and continue to invest in new products as consumer tastes evolve.
Founded in 1986 as a retail store in London, Pret has expanded to around 500 stores around the world and is becoming a staple for workers looking for quick but affordable options, especially for breakfast and lunch.
Recommended  Pret's revenue was £ 776 million in 2016, an increase of 15 percent over the previous year, as shown by the latest April 2017 financial results. Earnings before interest, taxes, depreciation and amortization rose 11 percent to £ 93.2m. The company said at the time that the total number of stores was 444 and that it wanted to reach 500 within a year.
The chain has its largest footprint outside Europe in the US, where it now operates 92 stores and has questions about its ability to grow.
Pret has recently been struggling with recruiting UK staff following the vote to quit the EU. For example, every tenth candidate in London comes from the UK and asks questions about his future occupation after Brexit.
JAB, based in Luxembourg, is an investment vehicle that manages the assets of the German Reimann family.
JAB is run and operated by three experienced executives in the consumer goods industry. JAB has established a presence in coffee companies and is now number two in the Swiss Nestlé market.
In recent years, JAB has concentrated primarily on the coffee business. It bought Keurig, which is best known for its coffee machines and single portions, as well as a number of retailers such as Peet's Coffee, Einstein Bros. Bagels, Krispy Kreme and Panera Bread.
JAB also owns high quality brands such as Stumptown and Intelligentsia Coffee. The coffee portfolio includes a majority stake in Jacobs Douwe Egberts, which sells a number of European brands, including Senseo and Tassimo.
JAB's expansion across the sector has led Nestlé to respond with its own dealmaking.
It would cost $ 7.15 billion to sell Starbucks coffee products outside its café chain. Last year, the company paid $ 700 million for a majority stake in upscale coffee retailer Blue Bottle Coffee.
The deal with Pret A Manger is expected to be completed this summer. Bridgepoint declined to comment. JAB did not respond immediately to a request for comment.