MISSISSAUGA, Ont. — Aegis Brands Inc. announced Monday that it’s completed the sale of its specialty-coffee brand, Second Cup Coffee Co., to Quebec-based Foodtastic
Foodtastic is a growing force in the restaurant-franchising industry and is poised to continue to grow with the latest transaction.
“We’re very excited to have acquired Second Cup and look forward to expanding the brand throughout Canada,” says Peter Mammas, president and CEO, Foodtastic. “We would also like to thank Aegis for giving us the opportunity and wish them the best with their future endeavors.”
The proceeds from the $14-million transaction were subject to certain adjustments on closing, resulting in a net closing cash payment to Aegis of approximately $12 million. In addition, the transaction includes an earn-out based on royalties earned from certain Second Cup cafés opened following the deal closing.
“We look forward to seeing Second Cup continue with Foodtastic,” says Steven Pelton, president and CEO of Aegis Brands. “At Aegis, we’re motivated by the amount of opportunity that exists in the market with respect to innovation and growth. We seek to support talented entrepreneurs and acquire strong brands as they emerge from the challenges of the pandemic.”
After the completion of the transaction, Aegis Brands’ assets include Bridgehead Coffee and Hemisphere Cannabis Co.