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Panera, SPAC pull plug on partnership

Panera, SPAC pull plug on partnership

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 settlement in November 2021 beneath which HUGS was set to develop into 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 take a position straight in Panera Manufacturers and develop into lead unbiased director of Panera Manufacturers’ board of administrators.

Nonetheless, the partnership was dissolved on June 30 “resulting from deteriorating capital market circumstances,” the businesses mentioned.

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

“HUGS will now concentrate on trying to find 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.”

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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 mentioned it can proceed to arrange for and consider a possible public itemizing ought to market circumstances enhance.

“We now have large respect for Danny Meyer, HUGS and its administration crew and have loved a really collaborative relationship since final fall,” mentioned Niren Chaudhary, chief government officer of Panera Manufacturers. “Sadly, the deterioration of capital market circumstances over the past a number of months has led to the belief that an IPO is probably not imminent, and consequently we felt it was acceptable to not lengthen our deliberate partnership. Nonetheless, we are going to proceed to arrange for and discover an IPO as market circumstances enhance, and there’s no change to our conviction in Panera, which is as sturdy as ever. It has been an important pleasure working with Danny and the HUGS crew and we want them the most effective.”

Practically 4,000 areas throughout 10 international locations make up Panera Manufacturers. As of June 30, there have been 2,120 Panera Bread bakery-cafes in 48 US states and Ontario working beneath the Panera Bread or St. Louis Bread Co. names. Caribou Espresso operates 713 Caribou Espresso shops in 10 international locations. 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 items in america. 

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