The Italian coffee company, Lavazza Group, has agreed to buy Mars Inc.’s coffee unit, Mars Drinks.
Lavazza will acquire the firm’s coffee business in North America, Canada, Japan, and Europe.
Under agreement, Lavazza will purchase Flavia and Klinz, two leading office coffee makers under Mars Drinks.
The financial details of the acquisition have not yet been revealed, however, sources claim the deal will be worth approximately US$650mn.
“This acquisition fits perfectly within our international expansion strategy, the objective of strengthening key markets, as well as the pursuit of having an even closer relationship with end consumers,” remarked Antonio Baravalle, CEO of Lavazza Group.
“Indeed, this acquisition strengthens the Lavazza Group’s position in the OCS [office coffee service] and vending segments, which offer considerable opportunities for growth and development.”
“Today’s transaction with Mars, Incorporated is consistent with a common vision and shared values between two prominent family-owned companies who have a strong focus on delivering quality products with uncompromising commitment to our employees and associates, with a long-term vision.”
Lavazza revealed intentions to direct Mars Drinks towards away-from-home coffee as part of its plans for expansion.