New Zealand's Pencarrow acquires Bell Tea & Coffee
Pencarrow Private Equity has bought Bell Tea & Coffee Company (BTCC), New Zealand’s oldest tea enterprise, from supermarket chain Foodstuffs. Accident Compensation Corporation (ACC) is coming in as a significant co-investor, while BTCC’s senior management team will also take a significant stake in the company.
The transaction value was not disclosed but Pencarrow typically targets companies with enterprise values ranging from NZ$20 million ($16.3 million) to NZ$100 million. The private equity firm will be the majority shareholder in the business, with Nigel Bingham and Rod Gethen, executive directors at Pencarrow, joining the BTCC board.
Pencarrow plans to expand the company's supermarket and foodservice distribution channels, introduce new products and consider bolt-on acquisitions, as well as exploring opportunities in overseas markets.
Founded in 1898 by Norman Harper Bell in Dunedin, BTCC has been under Foodstuffs' ownership since 1962. It has grown to become a leading player in New Zealand's beverage market with a portfolio of brands that includes Bell, Twinings, Gravity Coffee, Jed's Coffee, Burton's, NZ Live and Native Infusions. It is also responsible for coffee machine brands La Cimbali and Jura.
BTCC is the first investment from Pencarrow IV Fund, a NZ$124 million vehicle that focuses on buyouts, succession and expansion opportunities in New Zealand's mid-market space.
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