Posts Tagged ‘Arab Investments

30
Jul
09

Arab Investments acquires Coffee Republic

Arab Investments Ltd has today completed the acquisition of Coffee Republic with administrators KPMG.

Arab Investments intends to commit substantial capital into developing the Coffee Republic brand and will be embarking on further expansion of the branch network which currently includes 80 outlets, of which 20 are outside the UK, including Bulgaria and Saudi Arabia.

Richard Hill, joint administrator and KPMG partner, said: “I’m delighted that we have agreed the sale of Coffee Republic, rescuing a substantial part of the business and protecting 62 jobs. While coffee shops face tough competition on the High Street in these challenging economic times, the amount of interest we received in Coffee Republic is testament to the strength of the brand. I would like to thank the company’s employees and suppliers who have supported the business over the past three weeks, and helped us to achieve this successful outcome.”

Khalid Affara of Arab Investments, said: “We are delighted to have completed the acquisition of Coffee Republic today and we intend to start growing the business with immediate effect.

Coffee Republic has a very strong brand name and we are bringing additional investment into the company to expand the number of retail outlets in the UK and elsewhere.”

Arab Investments is a substantial privately owned property investment company based in London.

Arab Investments Ltd was advised on the acquisition by Fiona Hamilton, Business Recovery Partner and Head of Scottish Retail at King Sturge who said: “This deal is the UK’s largest coffee acquisition and we were delighted to be able to introduce our client to KPMG. We have provided operational and strategic acquisition advice and will continue to advise Arab Investments on strategy moving forward.”

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29
Jul
09

Coffee Republic bought by Arab Investments

Arab Investments, a private property company best known for plans to build a London skyscraper, has completed the acquisition of Coffee Republic, the coffee shop chain, from administration.

The company, which is planning to build one of the tallest buildings in London at the Pinnacle in the City of London, will today confirm the acquisition for an undisclosed amount. Administrator KPMG has been in talks to sell the business to Arab Investments for two weeks.

Arab Investments said that it would commit “substantial capital” into developing the Coffee Republic brand, and will embark on further expansion of the branch network. Coffee Republic operates 80 outlets, of which 20 are outside the UK, including Bulgaria and Saudi Arabia.

Khalid Affara, who runs Arab Investments in the UK, said: “We intend to start growing the business with immediate effect.

“Coffee Republic has a strong brand name and we are bringing additional investment into the company to expand the number of retail outlets in the UK and elsewhere.”

Richard Hill, joint administrator and KPMG partner, said that a substantial part of the business had been rescued, protecting 62 jobs. He said: “While coffee shops face tough competition on the high street in these challenging economic times, the amount of interest we received in Coffee Republic is testament to the strength of the brand.”

17
Jul
09

Arab Investments in exclusive talks to buy Coffee Republic

arabinvestments

The property company behind plans for one of London’s tallest skyscrapers has emerged as the surprise potential buyer of Coffee Republic.

Arab Investments, a private property investment company best known for its proposed Pinnacle tower in the City of London, on Friday entered into an exclusivity agreement with KPMG, which is acting as administrator to the coffee shop chain.

If successful, Arab Investments intends to put money into developing the Coffee Republic brand in the UK and overseas, and will start expanding the branch network immediately after completing the deal. It is thought to be in talks to acquire about 80 outlets, of which 20 are outside the UK, in countries such as Saudi Arabia and Bulgaria.

Arab Investments is thought to see the chain as having a strong brand name, which can be grown to challenge larger chains such as Starbucks and Costa. The deal is thought to be largely opportunistic, with the owners of Arab Investments seeing the chance to buy a large chain of leasehold outlets at a cheap price. No financial details of the transaction were provided.

KPMG confirmed that it had granted a period of exclusivity to the preferred purchaser of Coffee Republic, but declined to comment on the identity of the buyer.

Joint administrator Richard Hill said: “As expected, the huge volume of enquiries from interested parties produced a very healthy level of offers. We have spent the last few days clarifying the terms of the most attractive offers and we have now identified our preferred purchaser.

“We have agreed a period of exclusivity to allow that party to carry out some limited due diligence, which should enable us to agree the terms of the sale of the residual business as a going concern during the course of next week.”