Livingbridge is pleased to announce the sale of Kafevend (“Kafevend”) to Eden Springs (“Eden”), Europe’s leading provider of water and coffee solutions for the workplace.
Formed in 1992, Kafevend is one of the fastest growing workplace vending suppliers in the UK. The business supplies hot drinks, coffee vending machines, water and snack vending machines to SMEs and Corporates across the UK from its Headquarters in Crawley and offices in London, Epping, Bristol, Manchester and Scotland. Turnover in 2013 was £20m and the business currently employs approximately 100 people.
Livingbridge invested in Kafevend, on behalf of its clients the Baronsmead VCTs, in October 2005 to fund an MBO from IKON Office Solutions, who acquired the business in 1996. Since investment by Livingbridge, Kafevend has successfully developed a leading product portfolio delivering refreshments to over 10,000 sites throughout mainland UK. In 2010, Kafevend and Mars Drinks formed a significant partnership, built around their strong relationships, communication and exceptional customer focus.
John Collins, CEO of Kafevend, who led the 2005 MBO will join the Eden UK management team and take up the position of Commercial Managing Director, which encompasses their water and coffee interests in the UK. The exit yields a multiple of 2.5x and an IRR of 13.8% to Livingbridge clients the Baronsmead VCTs.
The shareholders of Kafevend were advised by Clearwater Corporate Finance (Corporate Finance), Pinsent Masons (Legal) and Aequitas Corporate Finance (Management Advisory).
John Collins, CEO, Kafevend, comments: “Kafevend has had a long and supportive relationship with Livingbridge during which time the company has gone from strength to strength. Becoming part of Eden Springs at this stage in Kafevend’s development will provide excellent opportunity for the business, our people and our customers.”
Benoit Broch, Investment Director, Livingbridge, comments: “We are pleased with the successful realisation of Kafevend. We wish the Management team every success in their new home at Eden, where there is a significant opportunity for further growth in the workplace drinks market. Kafevend has been a success story in our investment period in which continued growth has been achieved and market leadership established.”