MARS DRINKS acquired by LAVAZZA

Lavazza has agreed to acquire Mars Drinks, including the Flavia and Klix systems, from Mars, Incorporated, in a deal carrying an enterprise value of , debt included. Announced on October 1, 2018, the transaction is expected to close in December 2018, subject to regulatory approvals and employee consultation in certain jurisdictions. The acquired perimeter spans Mars coffee operations across North America, Germany, the UK, France, Canada and Japan, alongside production facilities in the UK and the United States. It brings together the Flavia tabletop machine business, the Klix freestanding vending machine business, and a portfolio of coffee and other hot beverages sold under proprietary brands such as Alterra and through licensed brands. The business generated revenue of in 2017 and employed approximately 900 people. Lavazza, the Turin-based roaster founded in 1895 and owned by the Lavazza family for four generations, framed the deal as a step in its international expansion and a way to strengthen its Office Coffee Service and vending channels, with a focus on the Away-from-Home segment. The group had already bought Carte Noire and ESP in France, Merrild in Denmark, Kicking Horse Coffee in Canada, NIMS in Italy and Blue Pod Coffee in Australia. Lavazza was advised by J.P. Morgan, Cleary Gottlieb Steen & Hamilton, PwC and The Boston Consulting Group, while Mars was advised by BofA Merrill Lynch, Freshfields Bruckhaus Deringer, KPMG and Rabo Securities USA.