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Restaurant chain Zoe's Kitchen announced Friday it has agreed to be bought out by privately held Cava Group Inc. in a deal with an enterprise value of about $300 million at $12.75 in cash for each share owned, Panera founder is involved in Cava Group.


Zoe's, who reported earnings last night said shareholders will recieve the equal to a 33% premium over $ZOES 30-day volume weighted average price ending Aug. 16. The last price in the premarket before the announcement was $9.02 after the stock fell from $9.56 after it's earnings report.

$ZOES has 261 outlets in the U.S.,and combined with Cava Group, which is a Mediterranean culinary brand with 66 restaurants the group will own 327 restaurants in 24 states.

The deal is expected to close in the fourth quarter and will be financed through a significant equity investment in Cava led by Act III Holdings, an investment vehicle created by Ron Shaich, founder and former CEO of Panera Bread, as well as existing investors Swan and Legend Venture Partners and Revolution Growth.

Cava CEO Brett Schulman will be CEO of the combined company with Shaich acting as chairman. Cava has agreed to pay a $17 million breakup fee if the deal does not occur.

Zoe's Kitchen shares were halted premarket for the news. 

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