Entrea Capital advised Lavazza on the acquisition of Onda Coffee Break

Entrea Capital advised Lavazza on the acquisition of Onda Coffee Break

Entrea Capital advised Lavazza on the acquisition of Onda Coffee Break

Client: Onda Coffee Break
Status: Private
Sector: Coffee Retail
Revenue: €2.2mln (2009)
Web: http://www.onda.bg/
Seller: Lavazza (Entrea Capital’s Client)
Status: Private
Sector: Coffee processing & Distribution
Revenue: €1.1bn (2009)
Web: http://www.lavazza.com

Target: Onda Coffee Break

  • The company is the largest independent Bulgarian coffee shops chain with 11 points of sales - coffee shops with a modern image and strategically located in Sofia’s most important streets and shopping centers. The offerings are focused on coffee and also include Italian-style sandwiches, fresh products and assorted pastries

Acquirer: Lavazza (Entrea Capital’s Client)

  • Lavazza (the “Group”) was in pursuit of international growth strategy, targeting high-growth East European countries
  • The acquisition represented an important investment, aimed at consolidating the Group's presence in Bulgaria
  • As a result of this transaction, Lavazza acquired 11 coffee shops, located in key shopping areas across the capital city of Sofia, meant to increase Lavazza’s brand visibility in the country

Situation Overview & Solution

  • Lavazza (the “Group”) was in pursuit of international growth strategy, targeting high-growth East European countries
  • The acquisition represented an important investment, aimed at consolidating the Group's presence in Bulgaria
  • As a result of this transaction, Lavazza acquired 11 coffee shops, located in key shopping areas across the capital city of Sofia, meant to increase Lavazza’s brand visibility in the country
 

Entrea Capital’s Role and Value Added

  • The acquisition allowed Lavazza to further expand its coffee shop business, which featured a portfolio of more than 350 points of sale at the time across Europe, United States and Asia
  • Entrea Capital, together with our M&A International partners in Italy, Arietti & Partners, provided the following services to Lavazza:
  • Originated the deal
  • Screened the market for potential targets
  • Initiated contact with shortlisted targets
  • Managed the due diligence process
  • Led subsequent price negotiations and was able to substantially decrease the original offer
  • Assisted in the drafting of the transaction documents

Selected Commentary Post Close

“Onda Coffee Break deal is consistent with company’s international development strategies and represents an important investment aiming at strengthen Lavazza’s presence within Bulgarian market.”

Lavazza Group Press Release, May 2010

“Coffee shops are particularly effective and suitable to increase brand awareness and direct knowledge of the Lavazza’s world and products, and create new habits in consuming and enjoying Italian espresso. We intend to increase our Group’s presence in countries where espresso segment shows a significant growth rate, such as Bulgaria and Eastern Europe overall.”

Marco Lavazza, Development and Acquisitions Manager, Lavazza Group, May 2010