Italy’s largest coffee company, Lavazza Group, has signed an agreement with the Sterling Infotech Group to acquire 100 per cent stake in Barista Coffee Company Ltd and Fresh and Honest Café Ltd (FHCL). The transaction is expected to be completed over the next four weeks.
Lavazza had been planning to enter the Indian market and this acquisition gives them an immediate access to the Indian consumer through Barista’s and Fresh and Honest’s strong countrywide network.
Lavazza, with annual revenues of over $1.2 billion, operates in over 80 countries and has strong presence in both out-of-home (café chains and coffee vending) and retail businesses. This deal will bring strong synergies between the business of Lavazza, Barista and Fresh & Honest.
Commenting on the deal, Alberto Lavazza, CEO of Lavazza Group, said, “We are delighted to enter the rapidly growing Indian market through Barista and FHCL. The agreement fits in well with our strategy to grow in markets with high development potential. In this respect we are proud to enter India with such a significant acquisition, which allows us to take a leading position in coffee shops and in the away from home market in line with Lavazza culture, we will take forward our values; which are attention to consumer needs and a passion for high quality coffee.”
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 FHCL and Barista, which we have nurtured in the past. The Sterling Group has decided to focus and expand in the area of renewable energy and as a consequence we are divesting the food and beverage 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 & Honest.”