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| Italian flavour |
Calcutta, March 9: Italy’s largest coffee company, Lavazza group, today said it will acquire 100 per cent stake in Barista Coffee Company Ltd (BCCL) and Fresh and Honest Cafe Ltd (FHCL).
A Lavazza release said it has signed an agreement with the Sterling Infotech Group, owner of Barista and Fresh and Honest Cafe. It, however, did not disclose the deal value.
The transaction is expected to be completed over the next four weeks, it added. With this deal, Sterling exits the food and beverages business (F&B).
“The agreement fits in well with our strategy to grow in markets with high development potential ... The acquisition allows us to take a leading position in coffee shops and in the away-from-home market in line with Lavazza culture,” Lavazza group CEO Alberto Lavazza said.
Commenting on the deal, V. Srinivasan, CEO, Sterling Infotech Group, said, “We are glad to sign this deal with Lavazza, who will bring rich international experience to the businesses of Fresh and Honest Cafe and Barista which we have nurtured in the past. Sterling group has decided to focus and expand in the area of renewable energy and as a consequence we are divesting the F&B business. We are glad that we found an excellent company in Lavazza, which will provide added impetus to the robust growth plans of Barista and Fresh and Honest.”
Lavazza, with annual revenues of over $1.2 billion, operates in over 80 countries and has strong presence in both out-of-home (cafe chains and coffee vending) and retail businesses.
Lazard was adviser to Lavazza, while Standard Chartered Bank advised Sterling Infotech.
Barista has over 150 espresso bars and Barista crèmes in over 29 locations in India. Besides India, Barista also has cafes in Sri Lanka, Oman and the UAE.
Fresh & Honest Cafe, part of the Sterling Infotech Group, is a pioneer in the freshly-brewed coffee vending business in India. Fresh and Honest Cafe has an installed base of 2,500 fully automatic vending machines. The company offers end-to-end vending solutions at client premises, including machine operation, maintenance, consumables and manpower.
