Caffè Nero Group has become the majority owner of Coffee#1 – acquiring shares from S.A Brain, its owner since 2011.
The acquisition gives Caffè Nero Group close to 70% ownership of the chain, with S.A Brain retaining c30% ownership.
Coffee#1, the Wales, Midlands and southern England based coffee chain currently has 92 shops with sales of more than £30m.
The business will sit alongside the Group’s other brands: Caffè Nero, Harris+Hoole and Aroma, with the intention to operate it as a standalone business, keeping the Coffee#1 brand intact.
Gerry Ford, founder and group CEO of Caffè Nero Group, said: “We’re delighted to welcome Coffee#1 into the Caffè Nero family. It is a fantastic brand with an emphasis on great coffee and service combined with a local community-based feel which matches perfectly the ethos of The Caffè Nero Group.
“Coffee#1 will continue to operate regionally and grow alongside the Caffè Nero brand.”
John Rhys, chairman of S.A. Brain commented: “I am proud of what we have achieved in growing Coffee#1 to 92 stores since we acquired the business seven years ago. I would like to thank our employees and everyone involved for making it such a resounding success.
“The Board has resolved that now is the time to join-up with a major player in the coffee market to take it forward to the next stage of its development. As ongoing significant shareholders in the business, we look forward to seeing Coffee#1 continue to grow and prosper within the Caffè Nero family over the coming years.”
The Group now has over 750 stores in the UK, and a total of more than 1,000 stores internationally across 10 countries.
Sapient Corporate Finance advised on the deal.
