MoCo Based Cava To Acquire Zoe’s Kitchen For $300 Million

by MCS Staff
Updated with additional information from Zoe’s Kitchen Inc.
“The next chapter…” wrote founder and executive chef, Dimitri Moshovitis, this morning. Reuters reported that CAVA will be acquiring Zoe’s Kitchen Inc. for approximately $300 million (with backing from a group of investors that includes Panera Bread founder, Ron Shaich). The 261-unit Mediterranean brand announced August 17 it has entered into a definitive agreement to be acquired by Cava Group, Inc., the company behind one of the country’s fastest-growing chains. The combined companies will now have 327 restaurants in 24 states, and form a powerful duo in the booming Mediterranean fast-casual industry.

According to Reuter’s, CAVA will pay $12.75 per share (a 33% premium to the 8/16/18 closing price). CAVA opened its 64th fast casual restaurant in Potomac Yards in DC earlier this week. This deal could potentially bring them up to over 300 locations. the purchase will be financed through a significant equity investment in Cava led by Act III Holdings, the investment vehicle create by Ron Shaich, founder, chairman, and former CEO of Panera Bread, and take Zoes private. After closing, Shaich will serve as chairman of the combined company. Brett Schulman, current CEO of Cava, will take over the same role to “work closely with the existing leadership teams at Zoes Kitchen and Cava to oversee their growth and evolution.

There are currently 3 Zoes Kitchen locations in MoCo– In Gaithersburg, Germantown, and Park Potomac.

 

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