Pret owner explores new investors ahead of possible IPO

Pret A Manger owner Jab Holding has reportedly engaged advisers to explore bringing in new investors for the business ahead of a public offering, according to the Financial Times (FT). 

People with direct knowledge revealed to the FT that Jab Holding, who acquired Pret in 2018 for £1.8m, is exploring various options including a stake sale. 

However, Jab told the FT that it wasn’t currently considering a stake sale. It added: “As we move closer to a potential IPO, we may evaluate bringing on a pre-IPO investor.”

The FT has also learnt that Jab is seeking to diversify away from consumer businesses and expand into insurance and asset management. 

Additionally, Pret, led by chief executive Pano Christou, has endured a “turbulent period” under JAB’s ownership. The pandemic caused a £343m operating loss in 2020, as lockdowns kept office workers and commuters at home.

Following the pandemic, Pret closed dozens of outlets and cut more than 3,000 jobs. Its trading figures have since served as a proxy for the return of office workers to city centres.

Despite ongoing cost pressures in the UK, the business has focused on international expansion. 

Although the majority of Pret’s 700 shops are in the UK, international markets now account for a quarter of its sales. The United States and France are its largest overseas markets, with additional stores in Canada, India, Greece and Spain.

For the year 2023, the group’s sales rose by 20% to £1.1bn, while adjusted core profit increased 12% to £166m, driven largely by growth abroad.

Jab Holding has been contacted for comment.