Caribou's Tattersfield to lead expanded JAB unit after bagel deal

Caribou Coffee chief executive Michael Tattersfield will get another gig to add to his current job: chairman of Einstein Bros. Bagels.

JAB Holding, the company that owns Brooklyn Center-based Caribou, announced Monday it's purchasing Einstein Noah Restaurant Group Inc. for $364.5 million in a move that will take the bagel firm private.

Tattersfield will be the new chairman of Lakewood, Colo.-based Einstein. He will remain based in Brooklyn Center as Caribou's CEO, said a spokesman for JAB.

In addition to Einstein Bros., the Einstein Noah firm owns Noah's New York Bagels and Manhattan Bagel, and it runs a dough-production facility. It has more than 855 restaurants in 42 states and the District of Columbia.

JAB will pay Einstein stockholders $20.25 per share, a 51 percent premium to its Friday closing price of $13.39. The companies put the deal's total equity value at approximately $374 million. Shares in Einstein closed up $6.76 to $20.15 on Monday.

The buyout has been approved unanimously by Einstein's board and was endorsed by its largest shareholder, Greenlight Capital, the investment group led by David Einhorn.

"For more than a decade, we have worked closely with the Einstein Noah Restaurant Group to execute a turnaround plan, reducing debt and expanding its store footprint," Einhorn said in a statement. "JAB is an experienced firm that will lead Einstein Noah Restaurant Group to its next phase of growth."

Tattersfield became Caribou's CEO in 2008 when it was struggling, and helped get the coffeehouse chain back on track.

"I have long admired the Einstein Noah Restaurant Group's strong market position and growth potential, and I am looking forward to contributing to the company's continued success," Tattersfield said in a press statement.

Einstein will keep its headquarters in Lakewood, Colo., when the acquisition closes and will continue to run as a stand-alone business.

JAB Holding is an affiliate of the private-equity firm Joh. A. Benckiser Group. The firm also owns stakes in D.E. Master Blenders 1753 N.V., a Dutch coffee and tea brand, and the leather goods company Labelux, which operates Jimmy Choo and Bally.

The Associated Press contributed to this report.