Luxembourg-based JAB Holdings expands geographical profile with Pret A Manger acquisition deal rumoured to be worth £1.5bn
JAB Holdings has further expanded its global portfolio of coffee, food, beverage and retail brands with the acquisition of UK-based food-to-go and coffee shop chain Pret A Manger.
The purchase of Pret, which has 530 sites across the US, Europe and Asia, from private investment firm Bridgepoint, will extend JAB’s global reach from its relatively US-centric portfolio. Although the exact value of the acquisition remains undisclosed, the rumoured £1.5bn deal will prove lucrative for Bridgepoint, which purchased Pret for £364m in 2008.
“We’re very excited to partner with Pret and its talented team to continue their extraordinary growth story,” said JAB Holdings Partner and CEO, Olivier Goudet in a press statement.
“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 of the company’s growth with JAB,” he added.
Pret A Manger CEO, Clive Schlee, hailed the deal as recognition of the brand’s global success. “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,” he said.
All 12,000 Pret staff will also receive a £1,000 windfall when the deal is completed later this year, Schlee confirmed.
Pret A Manger has posted nine consecutive years of like-for-like sales growth and generated revenues of £879m in 2017. It is likely the investment from JAB Holdings will propel Pret’s global expansion, with JAB reaping the benefits of integrating Pret’s best practice into its portfolio.
The acquisition is the latest addition to JAB’s growing global empire of coffee brands, which includes Peet's Coffee and Tea, Caribou Coffee, Einstein Noah, Krispy Kreme, and Panera Bread.
In January JAB acquired Dr Pepper Snapple
and announced plans to merge it with its Keurig Green Mountain business, a move expected to generate $11bn in revenue and create a formidable US beverage distribution network.