Advent International has partnered with CDIB Capital to acquire a significant equity position in International Coffee & Tea, which owns and operates The Coffee Bean & Tea Leaf, a coffee and tea retailer. Other investors participating in the transaction include Mirae Asset Private Equity and the Sassoon family (the largest existing shareholder of the company and is remaining as a substantial shareholder).
The Coffee Bean & Tea Leaf is the oldest and largest privately-held specialty coffee and tea retailer in the United States. The company currently has more than 900 company-owned and franchised stores across 15 US states and in nearly 30 countries. The company’s products are also featured in grocery stores, restaurants and offices. In 2010, The Coffee Bean launched the CBTL™ Single Serve Beverage System, which allows consumers to make their favorite espresso, brewed coffee, tea and specialty beverages at home with the touch of a button. The Coffee Bean & Tea Leaf was founded in 1963 and is based in Los Angeles (www.coffeebean.com) or (www.cbtl.com).
Will Kussell, a member of Advent’s Operating Partner program, will serve as Vice Chairman of The Coffee Bean’s Board of Directors. Prior to joining Advent’s Operating Partner program in 2010, Mr. Kussell served as President and Chief Brand Officer of Dunkin’ Donuts Worldwide. “The Coffee Bean has established an impressive brand and global platform over the past 50 years,” said Mr. Kussell. “We see a number of attractive opportunities for further growth and look forward to working with The Coffee Bean’s management to pursue these prospects. We will seek to develop the business by increasing the number of company-owned stores and supporting our franchisees in their development, all while maintaining a consistent focus on product quality and customer experience.”
Advent International is a global private equity firm with offices in 16 countries on four continents and has over 170 investment professionals across Western and Central Europe, North America, Latin America and Asia. The firm focuses on international buyouts, strategic restructuring opportunities and growth buyouts in five core sectors: business and financial services; retail and consumer; technology, media and telecom; healthcare and life sciences; and industrial. Founded in 1984, Advent has raised $32 billion in private equity capital and completed more than 270 buyout and private equity transactions (www.adventinternational.com).
“We were attracted to The Coffee Bean because it is the largest independent global player in a dynamic industry. The coffee chain market is poised for continued growth, driven by rising coffee consumption globally and an expanding middle class in Asia and other growing economies throughout the world,” said Jeff Case, a Principal at Advent International. “We believe Will Kussell’s expertise together with the knowledge and resources of the investor group will form a powerful combination to support The Coffee Bean in its next phase of development.”
CDIB Capital is a private equity investor focused on middle market transactions. Sectors of interest include consumer and retail, media and technology, value added manufacturing, and financial and business services. It is an affiliate of China Development Financial, founded in 1959, and one of the oldest and largest merchant banking groups in Greater China with over $17 billion in assets. CDIB Capital is headquartered in Hong Kong, with offices in Shanghai, Taipei, Seoul and San Francisco (www.cdibcapital.com)
“We have followed The Coffee Bean for many years, in particular its rapid expansion in Asia, and have been impressed by the strength of the brand and its connection with its consumer base. We believe that the company’s authentic Southern California brand heritage and global resonance provides a strong base for the future,” said HY Kim, a Managing Director at CDIB Capital.
Mirae Asset Private Equity is the private equity arm of Mirae Asset Financial Group, one of Asia’s largest independent financial services groups. Mirae Asset Financial Group was founded in 1997 in the wake of the Asian currency crisis and is credited with creating the asset management industry in Korea. Today, with over US$125 billion in assets under management, Mirae Asset has a presence in Hong Kong (global headquarters), Australia, Brazil, Taiwan, India, United Kingdom, Canada, US, China and Vietnam (www.miraeasset.com).
“We are excited to partner with Advent, CDIB Capital and the Sassoon family to continue the rapid growth of this business. We see many significant opportunities for The Coffee Bean in Asia and the US, and are excited to work to support this future growth,” said Jung-Hun Ryu, President at Mirae Asset Private Equity.
© 2013 PEPD • Private Equity’s Leading News Magazine • 9-13-13
