Milestone acquires Coffee Nation
Milestone, which manages £315 million and invests mainly in the UK and France, led the deal and provided an undisclosed amount of equity funding. Royal Bank of Scotland offered senior debt and loan facilities for working capital, while private bank Investec provided £5.25 million of mezzanine finance.
Coffee Nation, which operates 550 machines in outlets including service station operator Welcome Break and supermarkets Tesco and Somerfield, plans to use the funding to expand within its existing markets, break into new ones, and launch new products.
CEO Scott Martin says his ambition is to turn Coffee Nation into one of Europe’s leading coffee brands.
Founded in 1999, Coffee Nation’s first MBO, the following year, was funded by an investment of £4 million from private equity firm Primary Capital.
Its sale to Milestone was timely for the vendors, coming less than a week before changes to capital gains tax saw the basic rate of ten per cent raised to 18 per cent.