Smith Cooper provided full deal management to Purple World. This transaction adds to a growing number of food and drink related assignments handled by Smith Cooper Corporate Finance, this being the fourth Costa sale. Purple World is a good, profitable business and has been acquired by energetic, highly experienced and effective operators who already run a range of other food retail brands, both in the UK and abroad.
Purple World Limited, the operator of 10 Costa Coffee outlets in Cumbria and North Lancashire, was sold to Red and Racz Limited, a new company set up by private investors with existing businesses in food retail brands such as Domino’s and Nando’s. The multi million pound deal was initiated, and full deal management services were provided to the Seller, by Smith Cooper.
The Seller, Kay Berry, was one of the first few pioneering Costa franchisees globally, opening the first store in October 2005 in Fleetwood, having left a promising career in local government. Kay commented “the decision to become a Costa franchisee was not easy; I had been offered a significant promotion by my employer and the Costa opportunity was, at that time, just a fledgling concept that was largely unproven. The decision was right however and I have thoroughly enjoyed building Purple World into a leading business in the, now iconic, Costa brand”.
Red and Racz Limited was set up to make the acquisition by Mike Racz and Arvi Salariya, both of whom operate very successful, fast growth Domino’s franchises in the UK. Mike also has property, fitness and social media management businesses whilst Arvi has a majority stake in 3 Nando’s stores in Delhi, and operates an IT/technology equipment and video games businesses.
Costa Coffee is a global business operating in around 30 countries and is owned by Whitbread PLC. It dominates the UK coffee shop market with approximately 1,900 stores, about 40% of which are franchised, and operates around 4,000 Costa Express machines. Whitbread plans to grow worldwide store numbers by 200 in 2016 and is targeting £2bn of global sales by 2018.
Kay Berry said “I had no idea about the process nor indeed how emotional, stressful and frustrating it could be.I have huge admiration for Smith Cooper who do this every day! I could not have got the deal I did without them. I have the utmost respect and appreciation for their tireless and relentless determination to get the deal done. They showed consummate professionalism, dedication and, above all, good humour in achieving our goal. I have no hesitation in recommending their services.”
Smith Cooper Team