Tesco’s sale of non-core assets continued today with confirmation that coffee chain Harris + Hoole is being sold off to high street coffee group Caffe Nero.
All 43 Harris + Hoole stores will be taken over by Caffe Nero, which is the third largest chain in the UK coffee shop sector behind Starbucks and Costa.
The sale comes just a week after Tesco offloaded its casual dining restaurant business, Giraffe, to Bopharan Holdings.
Harris + Hoole was set up three years ago, with Tesco initially purchasing a large stake in the company before buying out the owners earlier this year to take full control.
Tesco confirmed the sale in a Q1 trading statement earlier today. “Following on from the agreed sales of Dobbies Garden Centres and the Giraffe restaurant chain, we are announcing today the proposed sale of Harris + Hoole to Caffé Nero. Together, these sales allow us to place even greater focus on our core UK business,” it said.
Caffe Nero operates 620 stores in the UK so the acquisition will add significant chunk of real estate to its portfolio.
Chairman and CEO, Gerry Ford, said the acquisition marked the start of an “exciting new journey” for the two businesses.
“Harris & Hoole has a strong reputation for high quality coffee and that is what Caffè Nero is all about,” he said. “This focus on coffee quality coupled with their enthusiastic and knowledgeable baristas give me reason to be excited about developing and growing the Harris & Hoole business over the coming years.”