Einstein Bagels Seeks Smart Money

Fri., May 31, 1996

From Staff And Wire Reports

Einstein Bros. Bagels Inc. said Thursday it plans to sell 2.2 million shares in an initial public offering, raising $44 million to help fuel the bagel chain’s national expansion.

Boston Chicken Inc., which helped form Einstein in 1995, will own a 63 percent stake in the bagel company. Boston Chicken will convert a $120 million loan into 15.3 million Einstein shares, valued at $306 million at the initial price of $20 a share, and will buy 2 million shares in a private placement.

Einstein Bagel’s offering should be a popular item, analysts said, because it combines bagels, one of the fastest-growing food segments, and Boston Chicken, one of the most successful IPOs.

“This entire segment is hot and the stock is going to benefit by the investment Boston Chicken is making,” said David Menlow at IPO Financial Network in Springfield, New Jersey. “Boston Chicken has always held a special place in investors’ hearts.”

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Einstein Bagels Seeks Smart Money

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