Lavazza buys out French company Espresso Service Proximité
Lavazza has made a new acquisition. It has taken full control of Espresso Service Proximité (ESP), a French joint venture created to distribute coffee vending machines in offices. “Lavazza is announcing the closing of the acquisition for 74% stake in the ESP company, of which it already had 26%,” reports the company in a release without getting into the details of the value of the transaction.
Lavazza had created the company in 2009 along with the French Deotto Finance fund and IVS, which specializes in automatic vending machines in France. By taking full control of ESP, the company also increases its dominance in distributing its machines in French companies. “This transaction confirms once again how important France is as a key market in the process of global growth for the Lavazza group,” continues the press release from the Turin-based company led by CEO Antonio Baravalle (pictured).
The interest in France is clear, as confirmed by the large acquisition made in 2016: 700 million for the French brand Carte Noire from the Jacobs Douwe Egberts group. After Carte Noire, the company bought Canada’s Kicking Horse Coffee, a big name in the organic and fair trade coffee segment, which has seen a great deal of growth in Canada and the United States in recent years.
Lavazza closed 2016 with record turnover of 1.9 billion, with growth of 29% and operating profits of 61.7 million, with growth of 34%. The company is aiming to reach 2.2 billion in earnings by 2020, and this is to be achieved by greater international expansion as well.