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Lavazza to Acquire Mars Drinks Business

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Lavazza to Acquire Mars Drinks Business

Lavazza to Acquire Mars Drinks Business
October 02
09:40 2018

The Lavazza Group, the Italian and international coffee roaster, has agreed to acquire Mars’ Drinks business, including the Flavia and Klix systems, leading brands in the Office Coffee Service (OCS) and Vending segments. 
The deal, which has an enterprise value of about $650 million, is in line with Lavazza Group’s strategy of consolidation at the international level, and entails the acquisition of Mars’ coffee businesses in North America, Germany, the UK, France, Canada and Japan, including its related systems and its production facilities in the UK and United States.

The acquisition includes the Flavia tabletop machines business and the Klix freestanding Vending machine business, which boast a large machine park installed throughout their markets of operation, and a broad portfolio of coffee and other hot beverages commercialized under both proprietary brands (eg Alterra) as well as through licensed brands.

The businesses involved in the acquisition generated a turnover of approximately US$350 million in 2017, and has a workforce of approximately 900 people. The deal is expected to close by the end of 2018, subject to regulatory approvals and procedures being completed.

“This acquisition fits perfectly within our international expansion strategy, the objective of strengthening key markets, as well as the pursuit of having an even closer relationship with end consumers. Indeed, this acquisition strengthens the Lavazza Group’s position in the OCS and Vending segments, which offer considerable opportunities for growth and development,” points out Antonio Baravalle, chief executive of the Lavazza Group.

In line with its previous acquisitions — Carte Noire and ESP in France, Merrild in Denmark, Kicking Horse Coffee in Canada, NIMS in Italy and Blue Pod Coffee in Australia — Lavazza intends to continue to enhance the acquired businesses, thereby strengthening its direct coverage of all segments of the coffee markets concerned, with a particular emphasis on Away-fromHome, according to an approach based on increasingly direct interaction with consumers.

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