Milan, France: A family owned company Lavazza has proposed an offer to buy French Brand Carte Noire for 800 million euros almost $870 million.
Lavazza is a family-owned company founded in 1895 that had an annual turnover of $1.46 billion last year. It sells coffee in 90 countries around the world, and is the lead player in the Italian market, whereas Carte noire(a split of Kraft food) is now a brand of coffee belonging American group Mondelez International. Since 1990, Carte noire has exported coffee and its assets to England, Belgium, Ukraine, Canada and Morocco. Lately in 2009, it made 20% of market share in France.
Currently the deal is waiting for the approval by the European Commission and French Authorities.
This deal took place in France and the financial details are still dissolved, but the two sources said that
Lavazza would pay around 800 million euros to purchase Carte noire roast and ground coffee, Nespresso compatible capsules, filter pods as well as the French company’s plant in Laverune, near Montpellier.
The proposed transaction would include the assets related to Douwe Egberts BV (Carte noire) in the European economic area excluding Tassimo Disc., and instant coffee.
Between Lavazza said it is also considering the acquisition of Lavazza Plant , located in Langue doc-Roussillon which would continue to produce the product of Carte noire.
The Motive behind taking such step is to increase the Company’s annual revenue by almost 50% to 2 million euros in its initial 10 years to avoid being taken over by other big competitors.
Well the offer is not bad for the Douwe Egberts BV’s Carte noire as it is said that the offer is set at 11.5 times more than the company’s overall financial health.
Lavazza Chief executive Antonio Baravalle said “to enhance our international development strategy this deal fits perfect.”