Two Equity Groups Expected To Bid For Dunkin' Donuts Chain

TORONTO, ON CANADA (Thursday, December 08, 2005) - Two groups of private-equity firms planned to submit bids Thursday to buy Dunkin' Donuts, the biggest U.S. coffee-doughnut chain, from the French company that acquired it as part of a bigger deal last summer, two people familiar with the groups' plans said.

Thursday was the deadline to submit bids to buy Dunkin' Brands Inc., which was bought by France's Pernod Ricard SA in July as part of its $13 billion US acquisition of Britain's Allied Domecq PLC.

In addition to Dunkin' Donuts, Canton, Mass.-based Dunkin' Brands owns the Baskin-Robbins and Togo's restaurant chains. The three units collectively generated $4.8 billion US in global revenue last year.

Pernod Ricard spokeswoman Florence Taron said Thursday the sale of Dunkin' Brands was "in progress."

"There are some offers," she said, declining further comment.

Details about how much was being offered could not be determined. Analysts have estimated Dunkin' Brands might sell for more than $2 billion.

One bid is coming from a group that includes Boston-based Bain Capital and Thomas H. Lee Partners along with Carlyle Group of Washington, D.C., said a person familiar with the plans who asked not to be identified by name because the firm does not comment on investment deals before they are finalized.

Another person familiar with the plans said another bid was being prepared by JP Morgan Partners - a unit of JP Morgan Chase & Co. - and Rhode Island-based Providence Equity Partners Inc. That person also asked not to be identified by name because of a similar policy against commenting on pending deals.

A third consortium made up of Kohlberg Kravis Roberts & Co. and Trimaran Capital Partners also was considering a bid, the Daily Deal reported Wednesday. KKR spokesman David Lilly declined to comment to The Associated Press on Thursday. A phone call seeking comment from Trimaran was not immediately returned.

Pernod Ricard said when the deal for Allied Domecq closed that it expected to unload Dunkin' Brands by the end of the year because the restaurants don't fit in with Pernod Ricard's liquor business. Pernod Ricard also said it needed cash from a sale to finance its acquisition of Allied Domecq.

View all Baskin-Robbins Press Releases

This article has been read 588 times.

Printed From:
http://www.thefranchisemall.com/news/articles/11225-0.htm