New World Coffee-Manhattan Bagel Inc. will buy the assets of bankrupt Einstein/Noah Bagel Corp. for about $160 million in cash to become the largest chain of bagel bakery shops. New World shares soared 47 cents, or 42%, to close at $1.60 on Nasdaq.
The Eatontown, N.J.-based company, the winning bidder in Friday's auction in U.S. Bankruptcy Court in Phoenix, also will assume as much as $30 million in liabilities in the deal.
The purchase gives New World 458 bagel stores in 29 states and the District of Columbia, for a total of 800 locations. The company had 2000 revenue of $45.7 million.
Einstein/Noah had revenue of $375.7 million last year. The Golden, Colo.-based company's shares rose 1 cent to close at 8 cents in over-the-counter trading.