Laser Investments Public Ltd. (LAS.CY) has secured majority control of the US-based Coffee Beanery Limited and at the same time secured the global franchise rights, giving it access to and control of 256 coffee franchises worldwide.
Laser CEO Lambros Christophi said the deal is valued at USD 18 mln and refers to the acquisition of the 50.1% control of Shaw Coffee Company, the holding company controlling the Coffee Beanery chain, based in Michigan, USA.
Christophi told the Financial Mirror that LAS will proceed with a capital increase, aiming to raise up to EUR 30 mln, part of which will be used to pay for the US acquisition, another part to pay for the acquisition of a UK-based coffee chain and the rest to finance the aggressive expansion drive now planned for Coffee Beanery.
“We intend to increase the number of our global stores from 256 now to 1000 by end of 2009 and then expand this further to 2000 stores by end of 2010, with the objective of becoming the second largest coffee chain worldwide behind Starbucks,” said Christophi.
The planned mix is set to be 90% through the franchise method and 10% own stores. Negotiations are also proceeding with a major US global multinational to open up to 1000 stores in the US.
Laser is already involved in negotiations to acquire a UK based coffee chain with 10 stores with a good geographical presence in shopping malls. Once the due diligence is completed, Laser/Coffee Beanery intends to expand its UK presence to 20 stores.
“We shall proceed with similar type acquisitions in other European countries.”
Referring to Cyprus, where the Group already operates 3 stores, Christophi said the target is to have 8 own stores, while new openings are also planned for Greece.
Christophi said Mrs. Joanne Shaw of the founding family has agreed to remain as Chairwoman and her son, Kurt will also become actively involved in the expansion drive in North America.
Specialty Coffee
The Coffee Beanery opened its first stores in the United States in 1976, before the American public knew the term "specialty coffee." In the 30 years that have followed, the Coffee Beanery continues to build its brand and franchise organization on the principles of time-tested and honoured traditions and values.
Today, the Coffee Beanery has over 135 locations throughout the U.S., and many more locations internationally, and is recognized as an industry leader for its unique family business approach, corporate culture and commitment to quality.
