Lone Star Funds is reportedly exploring a potential sale of Evoca Group, the Italian company known for manufacturing Gaggia espresso makers used in cafes and restaurants. The private equity firm may seek approximately $1.5 billion for Evoca or consider listing the unit in an initial public offering (IPO).
Evoca Group, founded in 1924 and headquartered in Bergamo, Italy, is a major player in vending machines and professional coffee machines. The company owns eight brands, including Necta, Wittenborg, Saeco, and Gaggia. While Gaggia's first coffee maker was invented in 1938, it now accounts for less than 10 percent of Evoca's total sales.
Evoca currently employs 1,800 people and serves over 10,000 customers across more than 100 countries. Last year, the company generated sales exceeding $400 million and reported core profit of about $95 million. It operates eight production bases and six R&D centers globally, holding over 600 registered patents.
Lone Star's contemplation of a sale follows interest from various private equity firms and businesses within the food industry. Deutsche Bank has been hired by Lone Star to explore the potential transaction. Five potential buyers have already initiated bids for Evoca, and the CEO, Andrea Zocchi, has confirmed the news. The entire transaction process could last two to three months, though Lone Star might ultimately decide to retain Evoca in its portfolio.
The potential sale aligns with recent consolidation in the global coffee industry, including Coca-Cola's $5.1 billion acquisition of Costa Coffee and Nestle's $7.15 billion deal for exclusive marketing and distribution rights for Starbucks' packaged coffee products.
