Mergers and Acquisitions

Brueggers was founded in the 1980’s, and was a pioneer of the quick-service bagel restaurant concept. By the mid-1990’s, there were almost 500 owned and franchised Brueggers stores in operation doing over $250.0 million in sales annually. Consensus’s Christopher Ellis handled a number of engagements raising growth capital for the company, before the franchisor was sold in a $140.0 million stock transaction to Quality Dining (QDIN), then a $500M public company that, among other things, was a successful Brueggers franchisee.

The success of the concept spawned a great many competitors. QDIN expanded too rapidly, and eventually began negotiations to sell the Brueggers franchisor to its archrival, Einstein Bagels. As the founders of Brueggers were the largest stockholders of QDIN, as well as the largest franchisee still with over 100 stores, they were involved in the proposed transaction. Mr Ellis was retained by the founders to represent them in the three way negotiations. When the QDIN transaction with Einsteins terminated unsuccessfully, the founders decided to buy back the Brueggers franchisor. They extended Mr Ellis’s engagement to negotiate, structure and finance the buyback. Mr Ellis raised the $65 million of debt necessary to fund the buyback and the transaction was successfully completed.