easyCoffee’s plan to roll out 800 vending machines nationally in the next year has been given a boost following a GBP10 million investment by Stellar Asset Management.
The UK’s only value coffee chain – part of the ‘easy’ family of brands that includes easyJet – has enjoyed rapid growth since it launched in 2016 and recently installed its 50th vending machine in the market, matched by serving its millionth cup of coffee in its eight coffee stores.
This substantial capital injection from estate and succession planning specialist Stellar Asset Management more than triples the amount secured in earlier capital raising rounds, which resulted in GBP3 million of investments in the company by investors such as Saudi investment group Al-Dhowayan. Previous investments by Stellar Asset Management, which has a portfolio worth GBP300 million, include the purchase of the Holiday Inn Express in Glasgow.
easyCoffee will be available to investors through Stellar’s ESP Growth Portfolio Service. ESP Growth is a discretionary managed portfolio investing in a diversified range of qualifying business activities. All these activities are underpinned by physical assets, to lower investment risk, and qualify for Business Relief, which provides investors with 100 per cent relief from inheritance tax after two years. The service is managed with the objective of providing capital preservation and growth, with a net target return of 5 per cent per annum.
easyCoffee CEO, Nathan Lowry, says: “We are excited to now move forward with our ambitious growth plans, thanks to this significant investment by Stellar Asset Management.”
He added: “Vending is a highly profitable business driven by brand recognition. This investment is an endorsement that the easyCoffee brand, like its sister brand easyJet, stands for a quality product and service at a value price.”
Jonathan Gain, of Stellar, says: “Stellar is delighted with this deal, we are committed to offering our investors maximum investment diversification and easyCoffee will sit alongside our other qualifying business activities including: commercial forestry and farming; residential and commercial development; renewable energy; and managing and operating hotels. We are looking forward to working with Nathan and the team and the exciting growth opportunities in this market.”
