Lavazza has acquired an 80% stake in Canadian coffee roaster Kicking Horse Coffee, in a deal worth CAD 215 million ($160.3 million).
British Columbia-based Kicking Horse has established a reputation for its organic and Fairtrade coffees, enjoying significant growth both in Canada and the US.
The acquisition will allow Italy’s Lavazza Group to continue growing its presence in North America – a key market outside Europe. It said that it planned to “further increase the ‘brand equity’ of Kicking Horse Coffee while sharing key respective competencies and values’.
The 80% stake is being bought from private equity fund Swander Pace Capital, which acquired the investment in 2012 in partnership with Jefferson Capital and United Natural Foods. The remaining 20% stake will continue to be owned by Kicking Horse founder Elana Rosenfeld, who is not expected to leave her post as chief executive officer.
The deal values Kicking Horse at more than $200 million.
Lavazza CEO Antonio Baravalle, who will become chairman of Kicking Horse Coffee, said: “Kicking Horse Coffee represents one of the ‘local jewels’ the Lavazza Group continues to seek as part of its globalisation and premium positioning strategy.”
It follows the acquisitions of French coffee brand Carte Noire and Danish coffee roaster Merrild in 2015.
“Today, organic [and] Fairtrade coffee is one of the fastest-growing trends at the international level, and in North America in particular. Kicking Horse Coffee leads this segment with a brand that is perfectly complementary to the Lavazza portfolio. In recent years, the company has constantly grown at a double-digit rate and, thanks to this acquisition, its growth and development prospects both in and outside of Canada will increase significantly.”
Kicking Horse co-founder and CEO Elana Rosenfeld added: “Kicking Horse Coffee has always distinguished itself for its unrelenting commitment to quality coffee, along with strong sustainability values. The Lavazza Group shares this vision and we now have the perfect partner to assist us in growing and connecting the world with our coffee. I am thrilled and honoured we now share this beautiful adventure with the Lavazza Group.”
Lavazza recently announced its best ever results, with record revenues of €1.9 billion.
© FoodBev Media Ltd 2022
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