The Nero Group has reached an agreement to acquire SA Brain’s remaining 33% stake in Coffee#1.
The company and one of its supportive shareholders originally bought 67% of Coffee#1 from the Welsh brewery in 2019. SA Brain has since been acquired by Marston’s.
Coffee#1 operates across Wales, the Midlands and Southern England, and opened its first store in 2011.
Since buying the majority share of the Coffee#1 business in 2019, the group has managed the Coffee#1 brand, including making significant operating improvements and growing the business from 92 stores to 102 stores today.
Caffe Nero said that Coffee#1 has proven to be a “robust” business, averaging 104% of pre-pandemic sales over the last four months to demonstrate its resilience.
The company plans to operate the brand as a standalone entity alongside its other brands, including Harris+Hoole and Aroma.
The Nero Group announced a refinancing package last month and said the acquisition of Brain’s minority stake in Coffee#1 was part of its strategy of pushing ahead with its growth ambitions.
Gerry Ford, founder and group CEO of The Nero Group, commented: “We’ve been delighted with the performance of the Coffee#1 business since it joined our group in 2019. It is a fantastic brand with an emphasis on great coffee and service combined with a local community-based feel, which matches perfectly with the ethos of The Nero Group.
“As we emerge from the pandemic, our intention is to return to growing stores in our group and investing in growth opportunities. Coffee#1 is very much part of that thinking. Acquiring Brain’s remaining position is the first step of this post-refinancing growth phase.”
BREAKING NEWS: Caffe Nero fixes sights on growth again after securing £330m loan
