Lavazza finalizes Carte Noire acquisition

Lavazza finalizes Carte Noire acquisition

Italy's largest coffee roaster, Lavazza, forecasts a 20 % turnover increase this year, after it acquired Carte Noire. Allegedly, the Italians have paid 700 to 750 million euro for the French brand.

700 to 750 million euro

The recently finalized Carte Noire acquisition bumps Lavazza's turnover to 1.7 billion euro this year, nearly 20 % more than in 2015. The French competitor was on sale since February 2015. Mondelez International was forced to sell it in order to get approval for the merger between its own coffee brand and Dutch D.E. Master Blenders 1753 (which is Douwe Egberts' parent company).

 

700 to 750 million euro exchanged hands in the deal, with 300 to 350 million from Lavazza itself and the remainder financed by banks. The deal puts Lavazza at the top of the French market and strengthens its position in a coffee market dominated by larger competitors like Jacobs Douwe Egberts.

 

2 billion turnover in 5 years' time

“Our goal is to become so large that it gives us a chance to become a pivotal part of the industry", Lavazza CEO Antonio Baravalle said during a Paris event. He added the group wants to increase its yearly turnover to 2 billion euro in the next 5 years. 45 % of its current turnover comes from Italy, but the goal is lower that to 30 % in the next 5 years.

 

Lavazza is currently seventh in the coffee roasting industry but hopes to grow thanks to key acquisitions, which will revolve around buying "local crown jewels".