Panera, SPAC pull plug on partnership

ST. LOUIS — Panera Manufacturers, Inc. introduced earlier this month {that a} partnership with USHG Acquisition Corp. (HUGS) is not going to be prolonged.

HUGS, a particular goal acquisition firm (SPAC) sponsored by an affiliate of Union Sq. Hospitality Group LLC, signed an agreement in November 2021 underneath which HUGS was set to grow to be a cornerstone associate with Panera Manufacturers.

As a part of the settlement, Danny Meyer, chairman of HUGS and founding father of Union Sq. Hospitality Group, was anticipated to speculate instantly in Panera Manufacturers and grow to be lead impartial director of Panera Manufacturers’ board of administrators.

Nevertheless, the partnership was dissolved on June 30 “as a consequence of deteriorating capital market situations,” the businesses stated.

“Based mostly on present capital market situations, it’s unlikely that an preliminary public providing for Panera will occur within the close to time period, and so we have now agreed to not lengthen our partnership past its present June 30 expiration date,” Mr. Meyer stated. “We’re dissatisfied that market timing was not on our facet, particularly as we have now such great admiration and respect for Panera, its total administration group and their companions at JAB.

“HUGS will now deal with looking for one other associate that embodies the values in line with HUGS and our Enlightened Hospitality roots, demonstrating that shareholder success is each depending on and pushed by an employee-first stakeholder tradition.”

Panera Manufacturers, which consists of Panera Bread, Caribou Espresso and Einstein Bros. manufacturers, was created in early August 2021. Panera Bread traded publicly on the Nasdaq earlier than JAB Holding Co. acquired it for $315 per share, or about $7.5 billion, in 2017.

The corporate stated it’ll proceed to arrange for and consider a possible public itemizing ought to market situations enhance.

“We now have great respect for Danny Meyer, HUGS and its administration group and have loved a really collaborative relationship since final fall,” stated Niren Chaudhary, chief govt officer of Panera Manufacturers. “Sadly, the deterioration of capital market situations during the last a number of months has led to the belief that an IPO might not be imminent, and consequently we felt it was acceptable to not lengthen our deliberate partnership. Nevertheless, we’ll proceed to arrange for and discover an IPO as market situations enhance, and there’s no change to our conviction in Panera, which is as sturdy as ever. It has been an excellent pleasure working with Danny and the HUGS group and we want them one of the best.”

Almost 4,000 places throughout 10 nations make up Panera Manufacturers. As of June 30, there have been 2,120 Panera Bread bakery-cafes in 48 US states and Ontario working underneath the Panera Bread or St. Louis Bread Co. names. Caribou Espresso operates 713 Caribou Espresso shops in 10 nations. Einstein Bros. manufacturers, which consists of Einstein Bros Bagels, Bruegger’s Bagels, Noah’s New York Bagels and Manhattan Bagel, operates greater than 1,000 company-owned and licensed models in the USA.  Source

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