Vertically Integrated Innovative specialty coffee company

July 10, 2024
by a searcher from Aston University in Birmingham, UK
Deal Points:
- Investing in a 30-year, vertically integrated specialty coffee brand with global reach.
- Products in 48 states, 21 company-owned and franchise cafés, 8 in Asia.
- Partnerships with Costco and Food Lion, offering innovative products like RTD Nitro Cold Brew.
Investment Thesis:
- Specialty coffee market is expanding due to consumer demand for unique and ethical experiences.
- High fragmentation among roasters presents consolidation opportunities.
- Long-term contracts with cafés, hotels, and offices ensure consistent revenue.
Plan:
- Expand retail footprint domestically and internationally, rebrand outlets, and acquire new locations.
- Diversify product offerings with new flavors, teas, and health-focused beverages.
- Enhance e-commerce and digital presence, strengthen brand through storytelling.
- Acquire complementary businesses such as Roasters, Group of Cafes, Material Suppliers.
The Offer:
- Seeking US$9.3M (6.0x EBITDA 2024), split into US$6.2M equity (10% preferred return) and US$3.1M debt (5-year amortizing loan at 8%).
- Use of funds: US$9.1M to seller and debt payout, US$0.2M for closing costs and working capital.
- Estimated 5-year return: MOIC 6x, IRR 43%.
from Eastern Illinois University in 900 E Diehl Rd, Naperville, IL 60563, USA
from Belmont Abbey College in Boca Raton, FL, USA