ISIS Equity Partners has sold Kafevend to Eden Springs in a deal advised by Clearwater Corporate Finance.
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 GBP20m and the business currently employs approximately 100 people.
ISIS 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 ISIS, Kafevend has 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.
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 13.7 per cent to ISIS 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).
Collins says: “Kafevend has had a long and supportive relationship with ISIS 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, ISIS Equity Partners, says: “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 workplace drinks market. Kafevend has been a success story in our investment period in which continued growth has been achieved and market leadership established.”
Marcus Archer, partner at Clearwater Corporate Finance, says: “The sale to Eden Springs delivers a great exit for Isis and an excellent home for Kafevend’s management team to continue to grow the business. As market leaders in the sector, Eden can leverage Kafevend’s strategic position in the UK and build on Kafevend's excellent track record in recent years. This deal shows that UK companies remain extremely attractive to overseas investors, as the potential for growth continues on its upward trajectory.”
