IPO for Dunkin’ Doughnuts

Dunkin' Brands Group Inc., the parent company of Dunkin' Donuts and Baskin-Robbins, mentioned they have filed a registration statement for a proposed initial public offering of $400 million of its common stock. "The offering is being made through an underwriting group led by J.P. Morgan Securities LLC, Barclays Capital Inc. and Morgan Stanley & Co. Incorporated. BofA Merrill Lynch and Goldman, Sachs & Co. are also acting as joint book-running managers of the offering. Dunkin' Brands intends to use the net proceeds from the offering to fund a portion of the redemption price for the outstanding Dunkin' Brands, Inc. 9 5/8 percent senior notes due 2018." explained the Canton-based company.

News that Dunkin' Brands was contemplating such a move have started appearing five weeks prior. The push to take the business public comes six years after private equity firms purchased Dunkin' for $2.4 billion. 574 new locations have been opened worldwide by Dunkin' Brands. The company which also runs ice cream chain Baskin-Robbins, has accelerated its growth in recent years.

The company hit it off rather well reporting $7.7 billion in 2010, compared to $6.4 billion in 2006 when the buyout companies took over Dunkin' Brands. Dunkin’ Doughnuts also teamed up with Pepsi wanting to offer its buyers a refreshing new drink. As a result the two beverage giants recently launched the Mountain Dew Coolatta, which will be available at Dunkin' Donuts restaurants.

"The partnership between Mountain Dew and Dunkin' Donuts brings together two beloved brands, each with millions of passionate fans who rely on our beverages to stay energized and keep themselves running. Both brands have heritages that go back more than 60 years, yet in many ways we have never been more relevant in people's daily lives." explained John Costello, chief global marketing and innovation officer at Dunkin' Brands.

Leave a Comment