Smell the coffee: Pret A Manger sold after 10 years with Bridgepoint
Sandwich chain Pret A Manger has been sold by its private equity owners for an undisclosed sum, with reports suggesting it could be as much as £1.5bn.
JAB Holdings has snapped up the ubiquitous cafe from its owners Bridgepoint, who have been looking to offload it for some months.
JAB is acquiring its stake in Pret through an investment vehicle of JAB Consumer Fund and JAB Holding Company, which is backed by a group of long-term investors.
Bridgepoint bought Pret A Manger at the height of the buyout boom in 2008 for £364m. It now operates 530 stores worldwide, generating group revenues of £879 million.
The transaction is expected to be completed this summer. The deal comes as the business reported its ninth consecutive year of like-for-like sales growth.
Pret chief executive Clive Schlee said: "This is a day of celebration at Pret. This agreement recognises the hard work of all our amazing teams around the world. Bridgepoint has been wonderful owners of the business for more than a decade.
"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. I am really looking forward to this next chapter of Pret's story."
On Twitter, he also announced that Pret's 12,000 staff are in line for a £1,000 bonus.
New owners JAB already have a strong foothold in the coffee market.
The company, which is a German conglomerate that is headquartered in Brussels, has majority stakes in Caribou Coffee Company, the US chain and the coffee brand Jacobs Douwe Egberts.
It also owns Krispy Kreme Doughnuts which is bought in 2016 for $1.35bn.
Olivier Goudet, JAB partner and chief executive, said: "We're very excited to partner with Pret and its talented team to continue their extraordinary growth story. Management's proven track record and commitment to customer service, investment in innovation and approach to freshly prepared food position Pret well as it capitalises on evolving consumer taste and lifestyle preferences.
"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 in the company's growth with JAB."
Earlier this year, William Jackson, managing partner of Bridgepoint, told the FT he was looking at all options for the future of the business, including a possible IPO.
Today he said: "We're proud of what we've achieved over the last 10 years with Pret and its management team. This has been a successful investment for Bridgepoint and illustrates how private equity, investing for the long term and working with talented management can deliver strong growth for the benefit of all stakeholders: customers, employees and suppliers and create real value for the wider economy.
"I wish Pret and its team continued success for the future."