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Are bagels and coffee a match made in heaven?

In a number of mergers we have highlighted, a change in a company's brand is often a reason behind the decision to team up with another entity. In today's competitive marketplace, injecting new life into a brand by combining one company's expertise in one area with the popularity and customer base of another company can lead to good results.

For shareholders and customers of Caribou Coffee and Einstein's Bagels, they hope that the marriage of bagels and coffee has a positive effect. Minnesota based JAB Holdings, Inc., which is Caribou's parent company, purchased Einstein Noah Restaurant Group in the fall of 2014 in a deal worth $374 million. 

Since the deal closed and passed muster from federal regulators, the companies have been experimenting with how they will offer their products together. Einstein's has closed a number of stores in the midst of the merger, and hybrid coffee shops are expected to open across the country. As of now, 19 shops have opened, and the companies expect to open 60 throughout the year.

It remains to be seen whether this marriage will be a hit with consumers, but it is an example of how the execution of a plan must be carefully crafted so that expectations can be tempered. The attorneys of Shulman, Hodges and Bastian have the experience and resources to help merging companies understand how their combined capabilities can be maximized, whether it is a change in branding, the acquisition of a strategic partner, or creating an entirely new company.

 The preceding is not legal advice. 

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