TURIN, ITALY — The Lavazza Group has agreed to acquire the coffee business of Mars, Inc. Financial terms of the transaction were not disclosed.
The transaction includes Mars’ coffee businesses in North America, Germany, the United Kingdom, France, Canada and Japan, and related systems and production facilities in the U.K. and United States. The acquisition includes the Flavia and Klix systems, leading brands in office coffee service and vending segments.
Mars Drinks generated sales of approximately $350 million in 2017 and has a workforce of approximately 900 employees. The deal is expected to close by the end of the year, subject to regulatory approvals.
“This acquisition fits perfectly within our international expansion strategy, the objective of strengthening key markets, as well as the pursuit of having an even closer relationship with end consumers,” said Antonio Baravalle, chief executive officer of the Lavazza Group. “Today’s transaction with Mars, Inc. is consistent with a common vision and shared values between two prominent family-owned companies who have a strong focus on delivering quality products with uncompromising commitment to our employees and associates, with a long-term vision.”
The acquisition is expected to strengthen Lavazza’s presence in office coffee service and vending segments, he added. Established in 1895, the Italian roaster operates in more than 90 countries and generated revenues of €2 billion ($2.3 billion) in 2017.
“Mars Drinks has been an important part of our business for many years, and while it’s always hard to say goodbye to great brands, valued associates and friends, we believe now is the right time for a change," said Grant F. Reid, president and c.e.o. of Mars, Inc. “We are confident this decision will better enable long-term success for the Drinks business with Lavazza — a company that shares our values and has a dedicated focus on beverages — and will allow the business and its associates to continue to thrive.”