The Lavazza Group has announced an agreement to acquire Mars Drinks, including the Flavia and Klix systems, from Mars Inc. The transaction is expected to close by the end of 2018 and is reportedly worth around $650 million.
Under the terms of the agreement, the Lavazza Group will acquire Mars’ coffee businesses in North America, Germany, the United Kingdom, France, Canada and Japan, including its related systems and its production facilities in the UK and the States.
“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,” according to Lavazza Group chief executive officer Antonio Baravalle. “Indeed, this acquisition strengthens the Lavazza Group’s position in the office coffee services (OCS) and vending segments, which offer considerable opportunities for growth and development.”
CEO of Mars, Grant Reid said: “Mars Drinks has been an important part of our business for many years, and while it’s always hard to say goodbye to great brands, valued associates and friends, we believe now is the right time for a change. We are confident this decision will better enable long-term success for the drinks business with Lavazza – a company that shares our values and has a dedicated focus on beverages – and will allow the business and its associates to continue to thrive.”