JAB acquires majority stake in Pret A Manger

29 May 2018 --- Global investment firm JAB will acquire UK sandwich shop chain Pret A Manger from Bridgepoint, an international private equity firm and its majority owner, and other minority shareholders. Terms of the transaction have not been disclosed, but the deal is expected to be completed during the summer.

Originally opened in London in 1986, Pret maintains a strong presence in the UK and boasts a rapidly growing international footprint with a presence in the US, Hong Kong, China and France. 

Pret’s sandwiches, salads and wraps are freshly made each day in shop kitchens using quality ingredients and its offering includes an array of vegetarian or vegan sandwiches and salads, as customer demand for meat‐free options continues to increase. 

The company operates 530 stores worldwide, generating group revenues of £879 million (US$1.1 billion).
 
“This is a day of celebration at Pret. This agreement recognizes the hard work of all our amazing teams around the world. Bridgepoint has been wonderful owners of the business for more than a decade,” says Clive Schlee, CEO of Pret A Manger.

“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 looking forward to this next chapter of Pret’s story.”
 
“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. The brand continues to thrive around the world thanks to our simple recipe of freshly prepared food, served by genuinely engaged teams.” 

JAB has been acquiring companies linked to the coffee market over recent years. It is a privately held German conglomerate, headquartered in Luxembourg, that includes investments of companies operating in consumer goods, forestry, coffee, luxury fashion, and fast food, among others. 

JAB’s portfolio includes a minority stake in the consumer products company Reckitt Benckiser, a majority stake in Coty, Inc., a majority stake in Peet’s Coffee & Tea, a majority stake in Caribou Coffee Company, a majority stake in Jacobs Douwe Egberts and a majority stake in Einstein Noah Restaurant Group. 

In January, JAB also announced a deal to take control of Dr Pepper Snapple to combine it with Keurig Green Mountain business. 

Olivier Goudet, JAB Partner and CEO, says the company is very excited to partner with Pret and expects strong growth. 

“Management’s proven track record and commitment to customer service, investment in innovation and approach to freshly prepared food position Pret well as it capitalizes on evolving consumer taste and lifestyle preferences,” he notes. 

“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.” 

JAB is acquiring its stake in Pret through an investment vehicle of JAB Consumer Fund and JAB Holding Company. JAB Consumer Fund is backed by a group of like‐minded, long‐term oriented investors and, together with JAB Holding Company, invests in companies with premium brands, attractive growth and strong margin dynamics in the Consumer Goods category. 
 
“Pret has a unique culture and is a great British success story. We’re proud of what we’ve achieved over the last ten years with Pret and its management team,” adds William Jackson, Chairman of Pret and Managing Partner of Bridgepoint.

“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.”