honoluluadvertiser.com

Sponsored by:

Comment, blog & share photos

Log in | Become a member
The Honolulu Advertiser
Posted on: Friday, December 9, 2005

Dunkin' Donuts sale 'in progress'

By Mark Jewell
Associated Press

BOSTON — Two groups of private-equity firms plan to submit bids to buy Dunkin' Donuts, the nation's biggest coffee-and-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.

Yesterday was the deadline to submit bids to buy Dunkin' Brands Inc., which was purchased by France's Pernod Ricard SA in July as part of its $13 billion 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 in global revenue last year.

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

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 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 yesterday. A phone call seeking comment from Trimaran was not immediately returned.

Industry analysts expect plenty of interest because of the fast growth of the Dunkin' Donuts chain. Dunkin' Donuts' $3.4 billion in U.S. revenue last year was a 13 percent increase over the previous year — more than double the 5.4 percent growth for the U.S. food-service industry.

Recent growth at the 55-year-old franchise chain has largely come from coffee sales and an expanded beverage menu that includes espresso and iced drinks.