Italian coffee company Lavazza, has secured an 80 percent equity stake in Canadian organic and fair-trade coffee company Kicking Horse Coffee, in a deal worth CAD$215 million. The equity was purchased from Swander Pace Capital, a private-equity fund that acquired the company in 2012.
Kicking Horse Coffee has shown significant growth in both the Canadian and US market in recent years. Founder and CEO Elana Rosenfeld, will retain a 20 percent equity stake in Kicking Horse and will stay on as the head of the company.
“Kicking Horse Coffee represents one of the ‘local jewels’ the Lavazza Group continues to seek as part of its globalization and premium positioning strategy,” said Antonio Baravalle, CEO of the Lavazza Group and future Kicking Horse Coffee Chairman, in a press release about the acquisition. “Today, organic fair-trade coffee is one of the fastest-growing trends at the international level, and in North America in particular.
“Kicking Horse Coffee leads this segment with a brand that is perfectly complementary to the Lavazza portfolio. In recent years, the company has constantly grown at a double-digit rate and, thanks to this acquisition, its growth and development prospects both in and outside of Canada will increase significantly.”
Kicking Horse Coffee is a British Columbia-based coffee roaster that was established in 1996. Like Lavazza, the company sells its beans in stores across the country, and in select online retailers.
“Kicking Horse Coffee has always distinguished itself for its unrelenting commitment to quality coffee, along with strong sustainability values. The Lavazza Group shares this vision and we now have the perfect partner to assist us in growing and connecting the world with our coffee.”
Lavazza recently announced revenues of over €1.9 billion in 2016. The acquisition is part of the company’s strategy to expand their reach in North America.