ITALY – Italian coffee giant Lavazza is poised to bolster its ownership in IVS Group, a leading vending machine operator in Italy, by acquiring an additional 28.36 percent stake for €185 million (US$197 million).
This move signifies Lavazza’s strategic push to consolidate its presence in the vending market and strengthen its competitive position.
Lavazza, currently holding a 20.4 percent stake in IVS aims to launch a voluntary tender offer to take the company private, with plans to eventually gain full control by 2027.
The proposed buyout offer, valuing IVS Group at around €650 million (US$694 million), presents an opportunity for other IVS investors, with Lavazza offering €7.15 per share, reflecting an 11 percent premium over the stock’s closing price.
According to Lavazza group’s CEO Antonio Baravalle, this operation aligns with Lavazza’s strategic vision to enhance its competitive edge in the international coffee market.
“The structure of the operation in the event that, starting from 2027, the options provided for in the agreements were exercised would allow the Lavazza group to strengthen its ability to compete with the other major coffee players at an international level… structuring itself in an even more solid way to compete in the current complex macroeconomic scenario,” he said.
IVS Group holds a prominent position in the vending industry, boasting a 21 percent market share in Italy by value and ranking as the second-largest vending operator in Europe with a 7 percent market share.
With a vast network of over 281,000 vending machines across 11 markets, including Italy, France, Germany, and Spain, IVS Group commands a significant presence in the European market.
Last year, IVS reported 34 percent year-on-year sales growth, achieving €762.2m (US$814m) in sales and an adjusted net profit of €13.8m (US$14.7m).
On the other hand, Lavazza witnessed growth despite rising raw material costs, particularly for Robusta coffee, and inflationary pressures that reduced consumer purchasing power and shrank the overall coffee market by 3 percent.
Lavazza’s EBITDA and net profit declined to €263 million (from €309 million in 2022) and €68 million (from €95 million in 2022), respectively, due to its focus on price control and absorbing cost increases.
In February, Lavazza expanded its collaboration with Keurig Dr Pepper (KDP) to enhance sales and distribution across North America.
This partnership aims to increase the availability of Lavazza K-Cup pods and introduce Kicking Horse Coffee, a Canadian brand, in the K-Cup pod format, further solidifying Lavazza’s foothold in the competitive North American market.
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