The Hindu Business Line : Lavazza to acquire Barista

Italy's largest coffee company, Lavazza Group, on Friday signed an agreement with the Sterling Infotech Group to acquire 100 per cent stake in Barista Coffee Company Ltd (BCCL) and Fresh and Honest Café Ltd (FHCL).

The transaction will be completed over the next four weeks. Both the companies have not disclosed the deal amount.

The Italian coffee company will be investing $130 million in India, which includes the cost of the Barista acquisition, during the next three years.

Lavazza has been planning to enter the Indian market for quite some time now. This acquisition gives them an immediate access to the Indian consumer through Barista's and Fresh and Honest's countrywide network.

Lavazza, with annual revenues of over $1.2 billion, operates in over 80 countries. It has a significant presence in both out of home (café chains and coffee vending) and retail businesses. This deal is expected to create synergies between the business of Lavazza, Barista and Fresh & Honest.

Mr Alberto Lavazza, CEO of Lavazza Group, said: "We are delighted to enter the rapidly growing Indian market through Barista and FHCL. The agreement fits in well with our strategy to grow in markets with high development potential. In line with Lavazza culture, we will take forward our values which are attention to consumer needs and a passion for high quality coffee."

Mr V. Srinivasan, CEO, Sterling Infotech Group, said, "We are glad to sign this deal with Lavazza, who will bring rich international experience to the businesses of FHCL and Barista."

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