Herkules III acquires Espresso House
(Oslo, 5 September 2012) Herkules Private Equity Fund III has entered into an agreement with Palamon Capital Partners to acquire Espresso House, Sweden's largest branded coffee shop chain. Herkules considers Espresso House, with its experienced, Norwegian led management team, to be a strong base for growth and expansion.
Espresso House is Sweden's largest branded coffee shop chain with 120 directly owned and operated coffee shops across the larger cities of Sweden. The company is focused on high quality specialty coffee, and offers a broad menu of warm and cold drinks, hot and cold food and bakery products. Espresso House has about 900 employees, and estimated turnover for 2012 is approximately SEK 560 million.
"We are impressed by the outstanding track record, strong culture and the enthusiasm of the management team and organisation. Espresso House has outperformed its competitors and we believe there is strong potential for further growth", says Sverre Flåskjer, Partner at Herkules Capital.
Adriano Capoferro, CEO at Espresso House, says that "Building off the strength of the business we have expansive plans for Espresso House for the next 5 years. We look forward to working with Herkules to create further value in developing further growth targets for Espresso House".
Herkules Private Equity Fund III acquires a majority of the shares of Espresso House Holding AB from Palamon European Equity II,L.P. for an undisclosed amount. Closing of the transaction is planned to take place by end of September 2012.
Sverre Flåskjer, Partner at Herkules Capital
Telephone: +47 22 04 80 09 /+47 48 11 04 66
Adriano Capoferro, CEO at Espresso House
Telephone: +47 95 87 81 65
About Espresso House: Espresso House is Sweden's largest branded coffee shop chain in terms of number of outlets and brand, with 120 directly owned and operated units across Eastern, Western and Southern Sweden. The company has a leading position in Stockholm, Gothenburg and Malmö, and is focused on offering high quality specialty coffee, but offers also a broad menu of warm and cold drinks, hot and cold food and bakery products. Espresso House has about 900 employees, all trained in house to become a barista. The company offers only Arabica single estate coffee, and all coffee shops are served by the company's own bakery. You can find further information on www.espressohouse.se
Herkules consists of three funds, with a total capital base of NOK 12.25 billion in committed capital from Norwegian and international investors. Herkules has the financial strength to acquire majority ownership positions in established companies with growth potential. Companies owned by Herkules funds are: Pronova BioPharma, Noratel, European House of Beds, Beerenberg Corp., Micro Matic Norge, Tilbords, Hatteland Display, EFG European Furniture Group, Aibel, Nevion, Estrella Maarud, Gothia Financial Group, Projectiondesign, Bandak, New Store Europe, Elis, ODLO, Intelecom, Norsk Jernbanedrift and Helse Holding.
Palamon Capital Partners, LP is an independent private equity Partnership founded in 1999, which is focused on providing equity for European growth services companies. Palamon, as a pan-European investor, originates, executes and manages investments in the UK, Germany, Italy, Spain, Norway, and Sweden. The Firm targets investments in companies where it can be the lead private equity provider and where it can provide strategic direction and partner with management to help build equity value. The Firm manages Palamon European Equity, L.P. and Palamon European Equity II, L.P. with commitments of €1.1 billion. For more information on Palamon refer to www.palamon.com