(Bloomberg) — Luigi Lavazza SpA agreed to access the coffee business of Mars Inc., including the Flavia and Klix systems, to aggrandize its sales in the U.S.
Lavazza is adorning its operations in appointment coffee makers and automat machines with the acquisition, which was aboriginal appear by Bloomberg News. The transaction ethics the business at about $650 million, bodies with ability of the amount said earlier.
The Mars Drinks coffee business had sales of about $350 actor in 2017 and employs about 900 people, according to a account from the companies. The accord additionally includes coffee operations in Germany, the U.K., France, Canada and Japan.
The acquirement comes as consumer-products companies, adversity as barter about-face abroad from mass-market candy foods and drinks, more see coffee as a key antecedent of growth. A chase for calibration in the business has led to Coca-Cola Co. affairs U.K. alternation Costa from Whitbread Plc and Nestle SA arresting a accord to bazaar Starbucks Corp. articles from beans to capsules, afterwards JAB Holding Co. airtight up Keurig Green Mountain, Peet’s, Stumptown and added brands.
“This accretion fits altogether aural our all-embracing amplification strategy, the cold of deepening key markets, as able-bodied as the following of accepting an alike afterpiece accord with end consumers,” said Antonio Baravalle, arch controlling administrator of Lavazza Group.
Lavazza acquired about 400 actor euros ($463 million) of costs for the acquirement from a basin of banks including Intesa Sanpaolo SpA, UniCredit SpA and BNP Paribas SA’s Italian assemblage BNL, the bodies said. Spokesmen for Intesa and UniCredit beneath to comment, while a adumbrative for BNL wasn’t anon available.
Klix, alien in 1973, is a cast of alcohol automat machines, and Flavia, launched in 1984, offers single-serve coffee makers for offices. Lavazza’s latest accord follows aftermost year’s accretion of Italy’s Nims, which specializes in affairs coffee capsules and machines door-to-door in Italy, and the acquirement of Canadian amoebic coffee maker Kicking Horse Coffee, as able-bodied as French characterization Carte Noire.
The Italian company’s admiral were JPMorgan Chase & Co., Cleary Gottlieb Steen & Hamilton, PwC and Boston Consulting Group. Mars was brash by BofA Merrill Lynch, Freshfields Bruckhaus Deringer LLP, KPMG LLP and Rabo Securities USA.
(Updates with accomplishments on Klix and Flavia in seventh paragraph.)
To acquaintance the editors amenable for this story: Dale Crofts at [email protected], Dan Liefgreen, John J. Edwards III
©2018 Bloomberg L.P.
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