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JAB Holdings to buy bagel seller Einstein Bros.' parent for $374 million

Bagel purveyor Einstein Noah Restaurant Group Inc. is being sold to JAB Holding Co., majority owner of coffee companies Peet's Coffee & Tea and Caribou Coffee, for $374 million.

JAB is offering $20.25 per Einstein Noah share, a 47% premium over the stock's 30-day trading average.

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News of the deal sent Einstein Noah's stock soaring $6.76, or 50.5%, to $20.15 on Monday.

The deal has been approved by Einstein Noah's board of directors and has the support of its largest shareholder, David Einhorn's Greenlight Capital.

"For more than a decade, we have worked closely with the Einstein Noah Restaurant Group to execute a turnaround plan, reducing debt and expanding its store footprint," Einhorn said in a statement. "JAB is an experienced firm that will lead Einstein Noah Restaurant Group into its next phase of growth."

Greenlight Capital owns more than 35% of Einstein Noah's outstanding common shares, and plans to tender them in favor of the deal.

The takeover is the latest change for Einstein Noah, which has been working to revitalize its menu, marketing and the design of its stores. It named Frank Paci as president and chief executive this month after having board member Michael Arthur in the post on an interim basis since February, when former President and CEO Jeff O'Neill resigned. Chief Operating Officer Emanuel Hilario also resigned this year.

In addition to Peet's and Caribou, JAB is majority owner of D.E Master Blenders 1753, the international coffee and tea company that was spun off from the former Sara Lee Corp. in 2012. JAB also owns Jimmy Choo, Bally and Belstaff, and has a majority stake in beauty company Coty.

Einstein Noah will continue to be based in Lakewood, Colo., and be operated as a stand-alone company, like JAB's other holdings. Michael Tattersfield, CEO of Caribou Coffee Co., will serve as board chairman.

The company operates, franchises and licenses more than 855 restaurants under the Einstein Bros. Bagels, Noah's New York Bagels and Manhattan Bagel brands in 42 states and Washington, D.C.

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