SA Brain & Co sells its remaining stake in Coffee#1 to Caffe Nero
SA Brain & Co has sold its remaining minority stake in coffee company Coffee#1.
The Cardiff-based family business sold a majority stake in Coffee #1 to Caffe Nero in 2019.
Originally founded by entrepreneur James Shapland in 2000, it was acquired by SA Brain & Co in a £15million deal in 2011.
Since then, Coffee#1 has expanded to over 100 stores across Wales and England.
The deal to acquire SA Brain’s minority stake comes after Caffe Nero completed a £330m debt refinance last month, which resulted in a takeover bid from the Issa brothers’ EG Group .
The value of his latest deal with SA Brain has not been disclosed.
Gerry Ford, Nero Group Managing Director, said: “We are delighted with the performance of the Coffee#1 business since joining our group in 2019. They are a fantastic brand with a focus on great coffee and service combined. with a local community vibe, which fits perfectly with the philosophy of the Nero Group.
“As we emerge from the pandemic, our intention is to return to growing our group stores and investing in growth opportunities. Coffee#1 is an integral part of this thinking. Acquiring the remaining position of Brain is the first step in this post-refinance growth phase.”
The group said Coffee #1 averaged 104% of pre-pandemic sales over the past four months.
In 2020, SA Brain & Co reached a deal with pub company Marstons, which saw the latter enter into long-term leases to operate over 150 Brains pubs.
There is speculation that the SA Brain is set to sell full ownership of 100 of its pubs in a £100m deal to a consortium including Song Capital and Cerebus Capital Management. Marketing of its pub portfolio is overseen by property consultancy Avison Young. SA Brain said it did not comment on market speculation
Publish any deal it leaves SA Brain will only have a small portfolio of freehold pubs alongside its brewery business in Cardiff Bay.