Glasgow-based coffee roaster Matthew Algie said it has been acquired by family-owned German coffee and food service business Tchibo for an undisclosed sum.
Tchibo cited a number of key attractions to Matthew Algie including its dedication to ethical trading, its training operations and technical customer support, and the potential to grow Matthew Algie’s Espresso Warehouse brand across Europe.
Matthew Algie, which employs 220, said it will continue to operate as a standalone entity “but with the platform for further expansion and innovation, building on its impressive growth in recent years.”
The deal with Tchibo will see the Matthew Algie brand retained in the UK with the company continuing to be run by its existing management team.
Matthew Algie’s senior management team including CEO Gary Nicol, sales and marketing director Brian O’Hagan, operations director Peter McGadey and technical director Ewan Reid, will continue to lead the expanding operation.
Tchibo will use the acquisition to expand its operations in the UK and Ireland.
Tchibo has 12,500 employees worldwide and generated revenues of around 3.4 billion euros in 2015.
Established in 1864 as a tea blender and wholesaler, Matthew Algie has been at the forefront of innovation and ethical trading in the UK coffee market, including the introduction of the UK’s first Fairtrade espresso bean.
In 2004 the firm launched the UK’s first Triple Certified espresso: Fairtrade, organic, and Rainforest Alliance.
Nick Snow, managing director for Tchibo Coffee Service, said: “Matthew Algie stands out in the UK coffee trade for its unrivalled ‘farm-to-cup’ approach to ethical sourcing, its technical excellence with dedication to staff and customer training, and the opportunity to grow the Espresso Warehouse concept internationally.”
Matthew Algie chairman Eric Hagman said: “We believe this deal gives the company a major platform for further growth and to expand Matthew Algie’s operations across the UK with an eye on European markets also.
“Tchibo is the right partner to help us build on the achievements of the last few years and we are very excited about the future potential of the business.”
Matthew Algie chief executive Gary Nicol said: “We have always worked hard to deliver consistently high quality products and that won’t change going forward.
“The investment of Tchibo also speaks volumes for the results achieved by our skilled and committed workforce.
“We are very keen to maintain Matthew Algie’s independence while providing it with the opportunity to drive innovation in the UK coffee service market.
“We will learn a lot from each other while both continuing to grow.”