Aegis Brands has announced an agreement to sell the assets of its wholly owned subsidiary Bridgehead coffee business to Pilot Coffee Group.
Pilot Coffee Group will purchase the business for $3.5m, also assuming liabilities.
The transaction covers the sale of assets related to roasting, wholesale and coffeehouse operations.
Pilot Coffee Roasters CEO Bruce Miller said: “Pilot Coffee Roasters is so very excited that Bridgehead will be joining our family. Bridgehead and Pilot Coffee Roasters share the same core values of offering customers world-leading speciality coffee and giving back to the communities in which they serve, both locally and globally.
“With Bridgehead's focus on organic coffee, it will strengthen even more our exceptional range of speciality coffee products and services to our customers across Canada. With both brands in the portfolio, it will bring the company to its continued goal of being Canada's leader in speciality coffee.
“We look forward to continuing to build on the legacy of both trusted brands and delivering exceptional coffee experiences to all our customers as we embark on this new journey together.”
Aegis Brands’ board of directors has approved the sale, which was also passed in a special resolution by Bridgehead.
Completion of the deal will take place in first quarter of 2024.
Proceeds from the sale will be used to reduce Aegis Brands' debt and bolster its working capital.
Aegis Brands president and CEO Steven Pelton said: “This strategic divestiture allows us to build on the momentum of the St Louis brand. In Q4 2023, St Louis increased same-store sales by 9.4% and has further improved on this trend thus far in 2024.
“We know there is significant growth yet to be realised with this brand and we are focused on creating shareholder value with this great asset.
“We are equally committed to our new St Louis spinoff concept, Wing City, which opened its first Toronto location in late December and will open its second in February.”
In April 2021, multiple restaurant concept franchisor Foodtastic acquired all the assets of speciality coffee brand Second Cup Coffee Co from Aegis Brands.
