In another sign of the continuing potential and growth of the coffee and cafe market in the UK, Risk Capital Partners, the private equity firm chaired by Luke Johnson, has announced that it has bought a majority stake in Brighton based Small Batch Coffee Company, the artisan coffee business.
Small Batch began roasting in 2006 and has since developed its own retail concept, growing to 5 stores across Brighton and Hove, together with two railway kiosks. Its successful wholesale business provides branded and bespoke blends to an expanding list of leading restaurants, coffee shops and cafes throughout the UK.
Risk Capital Partners is supporting the existing management team, led by Nigel Lambe as Chief Executive, who has worked alongside the exiting founder, Brad Jacobsen, for the past 5 years. Co-founder Alan Tomlins, runner up in the 2015 SCAE UK National Championship Roaster awards, will continue to head up the coffee and roasting side of the business, and existing operations manager, Kris Katin, will head up the retail business.
Great ambition
Luke Johnson, Chairman of Risk Capital Partners, commented: “I am a huge fan of Small Batch Coffee, not just their delicious coffee but also their cool spaces, friendly staff and meticulous attention to detail. We are delighted to have the opportunity to partner with Nigel and his team to help bring Small Batch to a wider audience.”
Nigel Lambe, Chief Executive of Small Batch said: “I am delighted to be teaming up with Risk Capital Partners, who have unrivalled experience in retail and wholesale food and café businesses. We have great ambition for the Small Batch brand and sought out Luke and his team when the opportunity arose.”
The investment and buyout coincides with the raising of a new capital investment loan facility from Santander plc, to help fund growth. Both Luke Johnson and Michael Simmonds, who led the deal on behalf of Risk Capital Partners, will join the Board at Small Batch.
Risk Capital Partners
Risk Capital Partners was established in 2001 by Luke Johnson and Ben Redmond, and focuses on investing in medium sized companies (£10m – £30m) across a range of industries. Typically it invests £3m to £15m of equity in any single company.
Risk Capital Partners currently owns Bread Holdings (the owner of Gail’s, the artisan bakeries), and has had success with previous investments in the restaurant space including; Giraffe, Patisserie Holdings and Strada.
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