Tag Archives: acquiring

Panera Acquiring Au Bon Pain Under Aggressive New Growth Effort

Panera Bread has reached a contract to obtain Au Bon Discomfort Holding Co., the Boston-based bakery-cafe chain of 304 units which was begun by the creators of Panera Bread.

The offer marks a new strategy for St. Louis-based Panera, which itself was gotten 3 months ago and is transitioning to brand-new leadership. It is the initial step in Panera’s “initiative to heighten growth in brand-new real estate channels, including hospitals, universities,” airports and metropolitan areas among others, the company said.

Terms of the deal, which is expected to close during the fourth quarter, were not revealed.

Ron Shaich, Panera’s creator, chairman and CEO, and his late partner, Louis Kane, produced Au Bon Pain in 1981. “With the acquisition we are revealing today, we are bringing Au Bon Pain and Panera together once again,” Shaich stated.

Synchronised to the acquisition statement, Shaich likewise revealed he was stepping down as CEO Jan. 1 while remaining as the firm’s chairman.

“This is the correct time for me to step down as CEO while still remaining associated with business as chairman,” he said. “I returned in 2011 since our development was slowing and we had to rearrange Panera as a better competitive alternative with broadened growth opportunities. And I enjoy to say we’ve done just that.”

Panera has been among the best-performing openly traded dining establishment stocks of the last 20 years, delivering a total shareholder return up 86-fold from July 18, 1997, to July 18, 2017, when it was sold to JAB Holding for $315/share, offering the offer a valuation of about $7.1 billion.

The sale to JAB was a boon to institutional investors. According to experts, the premium paid for Panera Bread was recognition of its previous investments to enhance performances and grow margins.

“Panera Bread Co. gained from an official take-out deal, as well as benefited from owning above market sales development due to its digital experience roll-out,” Waddell & & Reed Advisors Funds reported this past September.

Panera has been a leader in digital sales, carrying out about 1.3 million digital transactions weekly, representing about 28% of its sales, Shaich stated.

“Our omni-channel approach leads the industry, with shipment now available in more than 50% of the system and catering sales growing well over double-digits yearly,” he stated.

Blaine Hurst, Panera’s president and the designer of the digital technique is taking over as CEO.

“The past 7 years have actually given me the chance to learn from an industry icon,” Hurst stated. “With amazing brand-new initiatives underway to much better serve our customers and improve their dining experience, I think our chance is even brighter.”

As of September, Panera ran 2,050 bakery-cafes in 46 states and in Ontario, Canada.

In the acquisition of Au Bon Discomfort, Panera is being recommended by Skadden, Arps, Slate, Meagher & & Flom LLP. Au Bon Discomfort is being recommended by North Point Advisors LLC and Kirkland & & Ellis LLP.

Strategic Alliance in Experiential Retail Starts with WeWork Acquiring Lord & & Taylor Flagship Bldg .

$ 850M Retail Sale Gets HBC the Capital it Needs, Provides WeWork Access to 61M-SF Retail Grip

Hudson’s Bay Company (HBC) has leveraged one hot commercial realty sector to relieve it’s direct exposure to a having a hard time one.

The Toronto-based retail operator, which owns Saks Fifth Opportunity and Lord & & Taylor, has actually participated in a strategic alliance with Rhone Capital and WeWork Companies that it states is expected to produce future real estate transactions and monetizations.

The very first of these is the $850 million sale of the Lord & & Taylor building at 424 5th Ave. in New York City to WeWork Home Advisors – itself a joint endeavor between WeWork and Rhone.

The Lord & & Taylor flagship store will stay open through the 2018 holiday season, then be converted into WeWork’s New York head office. About 150,000 square feet of the 632,700-square-foot, freestanding retail structure will be protected as a smaller-footprint Lord & & Taylor shop.

WeWork sees the acquisition as a substantial opportunity to position itself as a feasible option in prime retail areas, using superior space effectively and effectively. For its part, Rhone has actually made a $500 million equity investment into HBC, structured as eight-year compulsory convertible preferred shares.

HBC has stated the transaction will lead to an aggregate C$ 1.6 billion (roughly US$ 1.2 billion) debt decrease and/or incremental money on its balance sheet, as well as increase its total liquidity by C$ 1.1 billion (US$ 867 million).

The transaction seems the very first in a series of sales as part of a method by HBC to deal with underperforming retail space, and the very first phase of WeWork’s strategies to take a more active function in the changing nature of the retail sector.

It likewise symbolizes WeWork’s dedication to New York City, according to WeWork CEO Adam Neuman, who noted, “As a service with an emphasis on human connections in physical spaces, we will continue to develop jobs within this city, while concurrently re-energizing the conventional retail experience.”

” Individuals from every walk of life are looking for spaces in huge cities that enable human connections. There is no reason retail area should not be part of that movement. WeWork’s role in this huge pattern will be to reimagine and improve locations so regarding promote cooperation, innovation and imagination,” Neuman included, noting that the collaboration with HBC to check out new trends linking property and retail was too great to skip.

Worldwide corporate area inhabited by HBC in New York City, Toronto, Perfume, Dublin and Bengalaru will be early adopters of ‘Powered by We,’ its new top quality operating platform for office. WeWork will begin leasing retail area within select HBC shops and will inhabit the upper floorings of HBC’s Toronto place on Queen St. and its Frankfurt site at the Vancouverand Galeria Kauhof on Granville St. HBC states modifications to its footprints at 424 5th Ave., Queen St. and Granville St. are expected to have minimal effect on those locations’ profits.

” Instantly upon closing, these deals are expected to substantially strengthen HBC’s balance sheet, boost our liquidity, and advance our core strategies by monetizing the Lord & & Taylor Fifth Opportunity structure and increasing the performance of crucial areas,” stated Richard Baker, executive chairman and newly-appointed interim CEO of HBC, who called the strategic alliance a transformative collaboration thank reconsiders how sellers develop exciting environments and take advantage of less productive space.

Retailers are being driven to re-evaluate their physical footprints, and will continue to do so as online sales continue to grow in order to find a suitable balance, inning accordance with Fitch Scores Partner Director JJ Boparai.

” Fitch views Hudson’s Bay’s revealed actions to pay down some debt and increase liquidity as positive, however issues remain around the business’s ability to effectively handle SG&A and navigate through the secularly challenged outlet store space,” Boporai said.

HBC took control of the Lord & & Taylor structure from National Real estate & & Advancement Corp. in September 2012, inning accordance with CoStar information, after NRDC and Ares Commercial Realty acquired the property from Federated Retail Holdings as part of a $432.92 million, multi-state portfolio sale in October 2006 that valued the possession at roughly $253.8 million.

See CoStar COMPS # 4038583 and # 1158829.

Diana Bell, New York City Market Reporter CoStar Group.

Aon Group Acquiring Property Expert Townsend Group for $475 Million

Aon to acquire leading real estate investment consultant Townsend Group; extending leadership position in financial investments Acquisition reinforces Aon’s position as a leading international expert services firm providing threat, retirement and health options

Aon, a global professional services firm providing a broad variety of risk, retirement and health solutions, accepted obtain The Townsend Group, majority-owned by Nest NorthStar Inc., a worldwide property and financial investment management firm.

London-based Aon is to spend for $475 million for Cleveland-based Townsend subject to particular purchase cost adjustments. No other financial terms were revealed by Aon.

NorthStar Asset Management Group Inc. paid $383 million in January 2016 for its 84% interest in Townsend Group– valuing the business then at $455 million.

Townsend offers worldwide investment management and advisory services mostly focused on real estate. This deal will bolster Aon’s offering in alternative personal market assets, reflecting the increasingly essential role they have in client portfolios.

With the integration of Townsend’s options into its financial investment organisation, Aon will broaden its financial investment capabilities considerably, that include contracted out primary financial investment officer (OCIO) services and advisory services for large and mid-sized worldwide organizations.

Aon’s Financial investment organization presently handles more than $100 billion of around the world assets1 and encourages on $4.2 trillion of properties internationally for more than 2,500 clients all over the world.

Townsend encourages on $175.7 billion in worldwide properties and manages $14.5 billion in properties. The firm’s customers consist of a lot of the world’s leading worldwide financiers in The United States and Canada, Asia, Europe and the Middle East.

“We mored than happy to have a large number of quality companies that wanted to partner with us, but it was the commonness of culture, approach and competence that led us to Aon,” stated Terry Ahern, CEO of Townsend Group.

Ahern will continue to lead property and genuine possession financial investment services as part of Aon’s Global Retirement & & Financial investment company.

“The divestiture of Townsend is certainly bittersweet for Nest NorthStar,” stated Richard B. Saltzman, president and CEO of Colony NorthStar, “but we’re extremely delighted that the gifted Townsend team has actually found an excellent new house with Aon. Townsend is an excellent non-core tradition NorthStar company, however by the closing of the Nest Capital/NorthStar merger in January of this year, it ended up being clear that the marketplace perceived a dispute with Colony’s institutional investment management service. For these reasons, Colony NorthStar’s sale of Townsend to Aon is a winning outcome for all 3 companies.”

Morgan Stanley & & Co. LLC functioned as special financial advisor for the deal.

The deal is anticipated to close over the next six months, based on traditional closing and worked out conditions.