Lavazza of Italy buys Barista for $125 million

THE $1.2-billion coffee major, Italy’s 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 cafe chain, Barista as well as the coffee vending business, Fresh & Honest of the latter, for an estimated valuation of around $125 million.
The Italian major, Lavazza was reportedly in talks with Chennai’s Sterling Infotech group, controlled by NRI C Sivasankaran over the past few months. However, a formal deal is said to have already been signed only now, sources told ET. International investment banker, Lazard is said to have facilitated the deal.
However, senior officials part of Mr Sivasankaran’s Sterling Group, including its director, Mr V Srinivasan failed to respond to ET repeatedly.
The Sterling Infotech Group forayed into the coffee business over the past decade or so, by venturing into the coffee 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 over the past fortnight, while participating at the 2nd India International Coffee Festival in Bangalore, that Lavazza is keenly looking at the Indian market, from where it imports 12% of its annual requirement.
courtesy:economictimes
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