
Advent, CDIB, Mirae back The Coffee Bean & Tea Leaf
Advent International has joined Taiwan's CDIB Capital and Japan's Mirae Asset Private Equity to acquire a significant stake in International Coffee and Tea, the company behind US specialty coffee and tea retailer - The Coffee Bean & Tea Leaf. The largest existing shareholder in the company, the Sassoon family, also participated in the deal.
Financial details of the transaction were not disclosed.
The Coffee Bean was established in Southern California in 1963 and claims to be one of the world's largest independent and privately-owned coffee and tea retailers. It has more than 900 company-owned and franchised stores across 15 US states and nearly 30 countries. Its products are also featured in grocery stores, restaurants and offices.
"We have followed The Coffee Bean for many years, in particular its rapid expansion in Asia, and have been impressed by the strength of the brand and its connection with its consumer base," said H.Y. Kim, a managing director at CDIB Capital. "We believe that the company's authentic Southern California brand heritage and global resonance provides a strong base for the future."
Will Kussell, a member of Advent's operating partner program, will serve as vice chairman of The Coffee Bean's board.
Prior to joining Advent's operating partner program in 2010, Kussell served as president and chief brand officer of Dunkin' Donuts Worldwide. Not only did he reposition the company as a segment leader in the US, but he also established an international growth strategy that led to a 60% sales increase from 2004 to 2009.
"We will seek to develop the business by increasing the number of company-owned stores and supporting our franchisees in their development, all while maintaining a consistent focus on product quality and customer experience," said Kussell.
The growth in coffee consumption in Asia is already well documented - China is now the world's fifth biggest coffee consumer - and unsurprisingly private equity has been keen to take advantage of the region's increasing appetite.
While there have been some significant deals involving coffee suppliers - last year CapVest exited United Coffee, one of Europe's largest coffee companies, to Japanese trade buyer UCC Holdings for EUR500 million ($617 million) - coffee shops have also been a popular target in recent times.
In July IMM Private Equity's bought South Korea's Hollys Coffee for up to $100 million, while last year Japan-based Advantage Partners saw a 7x return on its exit of Komeda Coffee to MBK Partners.
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