Italy's Lavazza buys Barista for $125 mn
The $1.2-billion Lavazza has picked up 100% stake in two coffee businesses of Chennai-based co.
By D Govardan, TNN |
CHENNAI: Italy’s largest coffee company, the $1.2-billion Lavazza, has reportedly picked up 100% stake in two coffee businesses of Chennai-based Sterling Infotech Group. Lavazza is said to have signed a deal for taking over coffee chain Barista Coffee Company as well as coffee vending business Fresh & Honest of the latter, for an estimated combined valuation of around $125 million.
Lavazza was reportedly in talks with Chennai’s Sterling Infotech group, controlled by NRI takeover tycoon C Sivasankaran over the past few months. However, a formal deal is said to have been signed only now, sources told ET. International investment banker, Lazard is said to have facilitated the deal.
But senior Sterling Group officials, including director V Srinivasan failed to respond to ET calls for confirmation.
The Sterling Group forayed into coffee business over the past decade or so, by venturing into the vending machine business. It set up kiosks at most of prominent public junctions, including railway stations, airports and corporates. Further, the Sterling Group, had also entered the coffee chain business and got a 100% ownership in Barista, when they acquired the stake held by the Tata Group.
Incidentally, a senior official, representing Lavazza had told ET, while participating at the 2nd India International Coffee Festival in Bangalore, that Lavazza is keenly looking at the Indian market.
Lavazza was reportedly in talks with Chennai’s Sterling Infotech group, controlled by NRI takeover tycoon C Sivasankaran over the past few months. However, a formal deal is said to have been signed only now, sources told ET. International investment banker, Lazard is said to have facilitated the deal.
But senior Sterling Group officials, including director V Srinivasan failed to respond to ET calls for confirmation.
The Sterling Group forayed into coffee business over the past decade or so, by venturing into the vending machine business. It set up kiosks at most of prominent public junctions, including railway stations, airports and corporates. Further, the Sterling Group, had also entered the coffee chain business and got a 100% ownership in Barista, when they acquired the stake held by the Tata Group.
Incidentally, a senior official, representing Lavazza had told ET, while participating at the 2nd India International Coffee Festival in Bangalore, that Lavazza is keenly looking at the Indian market.
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