UPDATE: Starbucks (SBUX) to Acquire Bay Bread and La Boulange Bakery Brand for $100M
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(Updated - June 4, 2012 4:09 PM EDT)
Starbucks (Nasdaq: SBUX) announced that it has entered into a definitive agreement to acquire San Francisco-based Bay Bread, LLC and its La Boulange® bakery brand, as well as to hire renowned French baker Pascal Rigo.
Over time, Starbucks plans to make La Boulange™ products available in Starbucks® company-operated retail stores in the U.S. In order to achieve this, Starbucks will look to make investments to broaden distribution capacity in select markets, while working closely with outside suppliers to create various La Boulange™ products for Starbucks stores nationwide. The company will continue to serve Bay Bread, LLC’s wholesale bakery customers and will evaluate expanding distribution over time.
Starbucks entered into an agreement to acquire Bay Bread, LLC and the La Boulange® bakery brand for $100 million in cash and expects the acquisition to dilute earnings by approximately $0.02 per share in the second half of fiscal 2012, compared to the previously announced earnings targets. Bay Bread, LLC and the La Boulange® bakery brand will be a wholly-owned subsidiary of Starbucks Corporation.
La Boulange® bakery operates 19 retail locations in the Bay Area and sells its products in several upscale restaurants, hotels, and specialty grocery stores in the region.
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Starbucks (Nasdaq: SBUX) announced that it has entered into a definitive agreement to acquire San Francisco-based Bay Bread, LLC and its La Boulange® bakery brand, as well as to hire renowned French baker Pascal Rigo.
Over time, Starbucks plans to make La Boulange™ products available in Starbucks® company-operated retail stores in the U.S. In order to achieve this, Starbucks will look to make investments to broaden distribution capacity in select markets, while working closely with outside suppliers to create various La Boulange™ products for Starbucks stores nationwide. The company will continue to serve Bay Bread, LLC’s wholesale bakery customers and will evaluate expanding distribution over time.
Starbucks entered into an agreement to acquire Bay Bread, LLC and the La Boulange® bakery brand for $100 million in cash and expects the acquisition to dilute earnings by approximately $0.02 per share in the second half of fiscal 2012, compared to the previously announced earnings targets. Bay Bread, LLC and the La Boulange® bakery brand will be a wholly-owned subsidiary of Starbucks Corporation.
La Boulange® bakery operates 19 retail locations in the Bay Area and sells its products in several upscale restaurants, hotels, and specialty grocery stores in the region.
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