By George Anderson
It is now official. Pernod Richard has sold its Dunkin' Brands business (Dunkin' Donuts, Baskin-Robbins ice cream shops and Togo's sandwich stores) to an investment group including Bain Capital, Carlyle Group and Thomas H. Lee Partners for $2.43 billion in cash.
The new owners plan to focus on expanding the Dunkin' Donuts franchise in the U.S. and abroad. While the brand is especially strong in the Northeast, the ownership group is looking to have it compete with Starbucks for market share. The chain currently operates 6,100 shops in 30 countries.
Anthony DiNovi, co-president of Thomas H. Lee, told Reuters, "The growth profile of this business is fantastic: You've got a business that's extremely strong in New England, 10-plus years of positive store growth and two brands with tremendous potential ahead of them."
The deal is expected to close in the first quarter of 2006. The new owners intend to keep current management in place.
Moderator's Comment: What should the new owners of Dunkin' Brands do with its Dunkin' Donuts unit? What do you expect to see the ownership group do with Baskin-Robbins and Togo's? - George Anderson - Moderator