Bridgepoint, the majority private equity owner of Pret A Manger, and other minority shareholders, have agreed to sell the UK-based sandwich shop chain to JAB Holdings, the private investment group taking on beverage giant Nestlé by rapidly acquiring companies linked to the coffee market.
The terms of the transaction have not been disclosed. Pret A Manger has operates 530 stores worldwide, generating group revenues of £879m.
Bridgepoint initially paid £364m, including debt, for the business a decade ago.
JAB said it was acquiring its stake in Pret through an investment vehicle of the JAB Consumer Fund and JAB Holding Company.
The JAB Consumer Fund is backed by a group of long‐term investors which, together with JAB Holding Company, invests in companies with premium brands, attractive growth and strong margin dynamics in the consumer goods sector.
The deal is expected to complete in the summer.
Hard work
Clive Schlee, chief executive of Pret A Manger, said: “This agreement recognises the hard work of all our amazing teams around the world.
“Bridgepoint has been a wonderful owner 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 also pleased to say that 2017 was another year of solid results for Pret, and we achieved our ninth consecutive year of like‐for‐like sales growth.
JAB partner and chief executive Olivier Goudet, added: “We’re excited to partner with Pret and its talented team to continue their growth story.
“Management’s 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.
Continued growth
“We look forward to working with Clive Schlee and his management team, while promoting the Pret brand and supporting Pret’s culture for the next phase in the company’s growth with JAB.”
William Jackson, chairman of Pret and managing partner of Bridgepoint, said: “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 value for the economy.”
To send feedback, e-mail Louise.Dransfield@egi.co.uk or tweet @DransfieldL or @estatesgazette
