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Wed, September 30 at 4:00PM ET

Zoe’s Kitchen Stock Skyrockets on Takeover Deal

Cava Group is offering $12.75 per share for ZOES stock

Zoe’s Kitchen (NYSE:ZOES) stock was flying high Friday on news of a takeover deal.

Zoe's Kitchen Stock Skyrockets on Takeover Deal

Zoe’s Kitchen says that it is taking part in an acquisition deal involving Cava Group. The deal will have Cava Group, a privately held company, taking control of Zoe’s Kitchen. It will be buying out all shares of ZOES stock to complete this goal.

The acquisition deal will have Cava Group paying $12.75 per share for ZOES stock. This represents a 33% premium to the stock’s closing price on Aug. 16, 2018. It is also a 33% premium to the stock’s 30-day volume weighted average price.

The deal to combine Zoe’s Kitchen with Cava Group is being funded via an equity investment from Act III Holdings. This is an investment group headed by former Panera founder and CEO Ron Shaich.

Once the deal is complete, current Cava Group CEO Brett Schulman will serve as the CEO of the combined company. Taking over as Chairman of the new company will be Shaich. Cava Group is also planning to work closely with members of Zoe’s Kitchen’s leadership team to help it grow further.

As a result of this deal, Zoe’s Kitchen has announced that it is delaying the release of its earnings report for the second quarter of 2018. The company was originally going to release it today, Aug. 17, 2018. Instead, the comapny now says that it will have it out by Aug. 20, 2018.

ZOES stock was up 33% as of Friday morning, but is own 43% year-to-date.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2018/08/zoes-kitchen-stock-up-on-takeover-offer/.

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