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11/2020

ILLYCAFFÈ acquired by RHONE CAPITAL

ITALY Food Processing / Beverages EV 1b - 4b EUR

Context

Gruppo Illy sold a 20% minority stake in its operating company, Illycaffè SpA, to affiliates of Rhône Capital in a strategic transaction valued at around EUR 200 million. The deal was signed in November 2020 and closed in early 2021, marking the first time since the company’s founding in 1933 that Illycaffè opened its capital to a non‑family institutional investor. The transaction was structured as a minority‑stake entry, with Rhône committed to remaining a non‑controlling shareholder to support the Illy family’s long‑term stewardship. The strategic rationale centers on Illycaffè’s ambition to accelerate international growth, particularly in the United States, the world’s largest coffee market, and to strengthen its presence in at‑home and digital channels. The minority‑stake transaction provides Illycaffè with additional capital, governance breadth, and strategic support to invest in US distribution, branded cafés, online sales, and sustainability‑linked initiatives, while preserving the family’s control and heritage‑driven positioning.

ILLYCAFFÈ, which reported an EBITDA margin of in 2019, is valued in this transaction at an EV/EBITDA multiple of , representing a to the average currently observed in the AgriFood sector (10.7x).

-> Deep-dive in AgriFood market trends

Target

Illycaffè SpA is a leading Italian premium coffee roaster and one of the largest coffee producers in Italy, based in Trieste. The company manufactures and markets a distinctive blend of nine varieties of 100% arabica coffee, sold under the illy brand, which is recognized globally for its high‑quality, consistent taste profile and iconic silver‑and‑red packaging. Illycaffè operates across multiple channels, including retail, foodservice, workplaces, and its own network of branded cafés, while maintaining a strong presence in both traditional and specialty‑coffee markets. The company generates the majority of its revenue from roasted coffee beans and ground coffee, with a growing contribution from single‑serve formats such as coffee pods and ready‑to‑drink systems that support at‑home and out‑of‑home consumption. Illycaffè has significantly expanded its global footprint, distributing its products in over 140 countries, and operates around 269 branded illy stores and café points in more than 40 countries, positioning itself as a premium, lifestyle‑oriented coffee brand. The business model is built on a combination of brand cachet, direct‑to‑consumer touchpoints, and long‑term relationships with hospitality and foodservice clients.

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Historical Financials (EUR)

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REFERENCES

Valuation range: EV 1b - 4b EUR

Revenue range: 450M - 900M EUR

EBITDA range: 50M - 100M EUR

Note: This page provides detailed data on a private equity M&A transaction. Detailed and exact financial metrics for the acquisition of ILLYCAFFÈ by RHONE CAPITAL are reserved for mynth community members. Register for free to unlock full data.

Authors: This transaction was contributed by a verified mynth contributor and cross-checked against available transaction documents and official company communications.

Target: illycaffè

Acquirer: rhone capital