NEW YORK, July 19 (Reuters) - Panera Brands is exploring

a sale of Caribou Coffee and Einstein Bros Bagels, as well as

its other bagel brands, in a deal that could value the

restaurant chains at more than $1.5 billion, according to people

familiar with the matter.

St. Louis-based Panera Brands, which is backed by private equity

firm JAB Holding, has tapped Bank of America to run a sale

process for the brands, the sources said. Other restaurant

operators and private equity firms are interested in bidding for

the assets, they said.

In addition to Einstein Bros, Panera is looking to sell

Bruegger's Bagels, Noah's New York Bagels and Manhattan Bagel,

said the sources, who requested anonymity because the

discussions are confidential.

Panera Brands, JAB and Bank of America all declined to

comment.

The latest move marks a reversal for Luxembourg-based JAB, which

combined Panera Bread, Caribou Coffee and the bagel brands into

the Panera Brands group in 2021.

Panera is hoping to command a valuation for the combined

coffee and bagels businesses equivalent to more than 10 times

their expected earnings before interest, taxes, depreciation and

amortization of nearly $150 million in 2024, the sources said.

Minneapolis-based Caribou Coffee has more than 800 locations

in 11 countries. The bagel brands have almost 1,000 locations

across the U.S.

JAB had been laying the groundwork for an initial public

offering of Panera Brands over the past year, one of the sources

said, adding that it could pursue a listing of the remaining

Panera Bread unit if the talks to divest the coffee and bagel

chains are successful. Panera Bread generates a majority of the

group's revenues.

Founded in 1987, Panera Bread was launched as a community

bakery that was originally known as the St. Louis Bread Company.

JAB manages over $50 billion of capital and owns stakes in

household consumer names like Keurig Dr Pepper ( KDP ) and

Krispy Kreme.