Au Bon Pain

Au Bon Pain is a fast casual restaurant concept with 119 company-owned cafés and 109 franchised cafés that serve freshly baked breads, signature sandwiches, pre-made and tossed salads, over 30 soup varieties and café beverages.

Engagement Goals

The Company sought a recapitalization that would support divergent goals: to provide liquidity to the shareholders and to fund both Company-owned unit growth and growth in the franchise business.

Engagement Process and Outcomes

Nature of the Assignment -- A private equity group had approached the Company and had discussions regarding a recapitalization.  The board of directors hired Brookwood to assist in the negotiations with that group and to contact other potential buyers in a limited market check.

Financial and Strategic Buyer Scenarios -- Brookwood contacted a select group of strategic and financial buyers, generating interest from several parties.  The management team was willing to remain with the Company and maintain a minority ownership stake if a financial buyer proved to bring significant operating expertise with its investment.  Brookwood presented a variety of financial buyer and strategic buyer scenarios and multiple indications of interest to the board of directors.

Result  -- Management received several attractive offers and ultimately chose to sell a majority stake in Au Bon Pain to LNK Partners.  The transaction allowed the current management to achieve partial liquidity, while remaining with the newly capitalized Company and retaining minority equity ownership.