Investee Company – BB’s Coffee & Muffins Holdings Ltd (UK)
Investee Company Business Type – Operator of coffee and muffin outlets
Type of Financing – Expansion
Equity Providers – Sand Aire Private Equity
Equity Leader (Individual) – Rupert Bell, Sand Aire Private Equity
Debt Providers – Bank of Scotland
Debt Type – Revolver facility, overdraft, asset finance, mezzanine facility
Debt Leader (Individual) – Alan McCaskie, Bank of Scotland
Equity Amount – £4.2 million
Total Deal Value – £12.9 million
Other Advisors – Sand Aire Private Equity was advised by Christine Holt of Macfarlanes (legal), Andrew Ware and Matthew Keson-Lee of BDO Stoy Hayward (financial due diligence), and Jeffrey Young and Matthew Green of Allegra Strategies (market due diligence).BB’s was advised by Mark Pacitti and Rob Foreman of Deloitte Touche Corporate Finance (corporate finance) and Paul Gilks and Julia Weeks of Maclay Murray Spens (legal).
Comments – Sand Aire Private Equity has announced the completion of a £4.2 million investment in BB’s Coffee & Muffins Holdings Ltd. The deal has resulted in Sand Aire taking a 42% stake in the company which operates over 60 BB’s Coffee & Muffins outlets across the UK, Ireland and Germany. Bank of Scotland has committed total debt facilities of £8.7 million.
This latest investment round will be used to support a roll-out in the UK and Ireland as well as further expansion into continental Europe. The completion of this deal represents the third round of equity funding following one by the Charles Church Trust in 2000.
BB’s has a policy to operate well away from expensive high street locations where other chains have struggled to generate profits. The brand uses a formula of muffins and baguettes baked freshly on site and served throughout the day, together with its Meal Deals options. This takes average customer spend to among the highest in the industry.
Phil Abbot, managing director of BB’s, has been heavily involved with the development of the brand which originated in Australia. As part of the Sand Aire deal, BB’s will acquire the intellectual property to the brand throughout Europe.
In 1997 Abbot started trading in the UK with fellow shareholder and operations director, Robert McLeary, who previously ran a number of McDonald’s franchises. Abbot and McLeary have invested over £2 million in the business to date. The team has recently appointed David Mezher as finance director.