JAB, the owner of Caribou Coffee and Peet's Coffee & Tea, said on Wednesday it would buy U.S. bakery chain Panera Bread in a deal valued at about $7.5 billion, including debt, as it expands its coffee and breakfast empire.
JAB Holdings offered $315 in cash per Panera share, representing a 20.3 percent premium to the stock's closing price on March 31, the last trading day before media reports of a potential deal.
Panera shares had risen about 4.6 percent from March 31 through Tuesday's close of $274. The stock jumped nearly another 13 percent to $309.49 in premarket trading on Wednesday.
Luxembourg-based JAB, the investment vehicle of Germany's billionaire Reimann family, has snapped up several U.S.-based breakfast and coffee companies in recent years, including Krispy Kreme Doughnuts and K-cup coffee
"In my view, Panera Bread becomes the crown jewel for this group," Bob Derrington, senior research analyst at Telsey Advisory Group, told "Squawk Box." He later added: "This, for JAB, makes a lot of sense."
JAB became the world's largest pure-play coffee maker by volume in 2015, when its created Jacobs Douwe Egberts in Europe, a joint venture that combined its D.E. Master Blenders 1753 business with the coffee business of U.S.- based Mondelez International.