Target: Bruegger’s Enterprises Inc.
Sponsor: Louis Le Duff
Seller: Sun Capital Partners Inc.
A spokeswoman for Bruegger’s Enterprises Inc., a bakery cafe chain that Sun Capital owns, has confirmed the company has an agreement to merge with an affiliate of Le Duff’s company, Groupe Le Duff. The deal is not yet closed, however, the spokeswoman said.
The Federal Trade Commission on Feb. 28 granted early termination of anti-trust review to a deal in which Le Duff is listed as the buyer of an entity called Bagel Acquisition Corp. from Sun Capital.
The business being sold is likely Bruegger’s Enterprises Inc., which prides itself on being “the only national chain to make bagels using fresh dough and the traditional boil and bake process.”
Executives at Sun Capital declined to comment, while representatives for Le Duff did not respond to requests for comment by deadline.
The Burlington, Vermont-based company is ripe for exit, considering it’s been in Sun Capital’s portfolio since May 2003. Since then, Sun Capital has employed a buy-and-build strategy, with four add-on acquisitions: Outland Bagels and Alpine Bagels, two bagel retailers the company bought in June 2005; Bagel Factory Inc., a bagel bakery, acquired in 2008; and the retail operations of Timothy’s Coffees of the World, bought in 2009 for $4 million, according to Capital IQ.
Bruegger’s would appear to be a natural fit for Le Duff. His company, Groupe Le Duff, operates several health-inspired bakery and restaurant chains, including Bridor, a bread and pastry chain; Fournil De Pierre, a French bakery and pastry shop; and Brioche Doree, which Le Duff started in Brest in 1976 and now operates more than 500 locations with 5,000 employees, according to Groupe Le Duff’s web site.
Le Duff also has a strong affinity for the U.S. He was born into a family of market gardeners and vegetable merchants in Léon, according to a lengthy biography on Groupe Le Duff’s Web site. In the 1970s he sought an MBA at the University of Sherbrooke near Montreal. There and in New York he learned how successful crapêries were, and he opened up one in a Quebec ski resort. Le Duff notes in his company biography that in America “anyone who really wants to set up in business can do so and succeed.”