Private equity arm of Franklin Templeton Investments Darby Overseas Investments has picked up an undisclosed stake in coffee chain Cafe Coffee Day for $25 million.
Darby's Asia Mezzanine Fund II has invested USD 25 million in Bangalore-based Amalgamated Bean Coffee Trading Company Ltd (ABCTC), the owners of Coffee Day, the company said in a statement without disclosing further transaction details.
This is Darby's third investment in India in the last 12 months, it added.
Coffee Day is one of the largest integrated coffee players in India, with operations across the coffee value chain, from procurement and processing to retailing. It owns and operates coffee cafes in India under the brand “Cafe Coffee Day”.
The funds will be deployed in expanding Coffee Day's presence across India and in parts of Europe, it added.
Commenting on the development, Amalgamated Bean Coffee Chairman V G Siddhartha said the partners were looking forward to a productive alliance.
Darby's Chief Executive Officer Richard H Frank said: “Coffee Day has successfully consolidated its market leader status and is positioned to take further advantage of the ongoing macroeconomic, demographic and lifestyle changes. We are attracted to ABC because of its leadership position within India's rapidly-expanding consumer lifestyle segment and its strong execution capabilities.”
Source: Economic Times