David Einhorn of Greenlight Capital gave the thumbs up to Einstein Noah Restaurant Group’s takeover by a JAB Holding Company affiliate, which will buy the creator of Einstein Bros. Bagels, Noah’s New York Bagels and Manhattan Bagels brands for $20.25 per share in cash or $374 million. This is a 47% premium to the company’s current value and shareholders approved of the deal. David Einhorn, who owns 35% of the company, has agreed to tender its shares, and as reported by Seeking Alpha, commented, “Greenlight supports this transaction, and thinks it delivers significant value to Einstein Noah Restaurant Group’s shareholders, and is a win-win for all parties.” Einhorn added that Greenlight has worked closely with the company to affect a turnaround and cut costs, and welcomes the deal as ushering in “a new phase of growth.”
Einstein Noah will continue to operate as a standalone business in the JAB portfolio, much like Caribou Coffee, another JAB holding. Nelson Heumann, chairman of the board of Einstein Noah Restaurant Group, said, “we will continue to revitalize our brand, enhance our footprint and and solidify our position as the leader in the fresh-baked bagels industry.”
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