Porta Finance advises on the sale of the largest Baltic coffee shop chain Caffeine Roasters

03 October, 2018

BaltCap and the founders of Caffeine Roasters are selling 100% of Caffeine Roasters to Reitan Convenience. The acquisition is part of Reitan Convenience’s vision of becoming Europe’s largest convenience operator.

“Caffeine is an exciting success story. The founders always had very strong ambition to be the clear sector leader in the Baltics and have vigorously executed their strategic plan. We feel privileged having had the opportunity to work with Caffeine’s team and wish the company a success through the next growth cycle ahead”, commented Kornelijus Čelutka, manager of BaltCap’s Lithuania SME Fund.

BaltCap’s Lithuania SME Fund held 70.5% of the shares of Caffeine, and the team of founders held the remaining 29.5%.

“Caffeine Roasters is one of the strongest coffee shop brands in the Baltics and is known for its quality coffee and excellent service. The company’s coffee shops are located at the best locations in the largest cities. We are planning to grow our business in the Baltics, and further, we are looking for opportunities to expand Caffeine Roasters to other countries”, said Johannes Sangnes, CEO at Reitan Convenience.

Caffeine Roasters was established in 2007 in Vilnius. The chain currently operates 60 coffee shops in Estonia, Latvia and Lithuania, which makes Caffeine Roasters the largest coffee chain in the Baltics.

Reitan Group consists of five independent business units: REMA 1000, Reitan Convenience, the Uno-X Group, Reitan Property and Reitan Capital. Reitan Group had a turnover in 2017 (including franchise sales) of NOK 89 billion, and employs 37,000 people in Scandinavia and the Baltic region. Reitan Convenience has 2,250 stores in seven countries, including Narvesen in Norway, Latvia and Lithuania, 7-Eleven in Norway, Sweden and Denmark, Northland in Norway, Pressbyrån in Sweden, R-kioski in Finland, R-kiosk in Estonia, and Lietuvos Spauda in Lithuania.

BaltCap is the largest independent manager of private equity and venture capital funds in the Baltic States, where it has operated since 1995. BaltCap has invested in more than 70 companies based in the Baltics. In 2017, its portfolio companies had combined annual revenues of €615 million.

Porta Finance acted as an exclusive financial advisor to BaltCap and the founders, assisting the vendors on all aspects of the transaction, including designing the sell-side process, contacting investors, coordinating due diligence, preparing valuation analysis, assessing strategic and tactical alternatives and negotiating transaction documentation.

The transaction is subject to approvals from local competition authorities.

Further information:
Julijus Grigaliūnas
Managing Partner, Porta Finance
Tel: +370 5 205 3123