Lavazza Coffee invests more for full control of IVS

Lavazza Coffee invests more for full control of IVS

April 25 - 2024

Coffee Geography Magazine

Lavazza turns its eyes to invest further in IVS, a machine vending company by acquiring a stake for $197 million for full control of the company. The plan is to buy out other investors in IVS at 7.15 euros per share, entailing a premium of 11% compared to the stock's closing price on Monday. Shares in IVS failed to start trading at the market open. The buyout offer, valuing IVS at 647 million euros, follows an agreement Lavazza signed with the majority shareholder in IVS, giving the Turin-based coffee maker the option to acquire full control of IVS from 2027.

If successful the buyout offer will hand Lavazza a 28.36% stake in IVS, adding to the 20.4% Lavazza already owns, and lead to the delisting of IVS. IVS is currently controlled by IVS Partecipazioni which will retain its 50.75% stake until put and call options are exercised, which can happen only after the approval of IVS's financial statements for 2026. The current management of IVS, which is the second largest player in the European Union's vending machine market with a market share of around 7%, will remain in place. 

"The transaction represents a further investment by the Lavazza Group in the vending industry, in line with its strategy based on an omnichannel approach," the coffee maker said in a statement.

LAVAZZA is a global player in the coffee sector based in Italy. Founded in Turin in 1895 by Luigi Lavazza, it was initially run from a small grocery store at Via San Tommaso 10. The business is currently administered by the third and fourth generations of the Lavazza family. Branded as "Italy's Favourite Coffee," the company claims that 16 million out of the 20 million coffee-purchasing families in Italy choose Lavazza. Among its offerings today are products such as Qualità Oro, Qualità Rossa, Club, Espresso Italiano, Espresso Barista Perfetto, Caffè Crema, Gran Aroma, Super Crema, Gran Crema, Crema e Gusto, Crema e Aroma, Top Class, Grand'Espresso, Dek (decaffeinated) and coffee capsules A Modo Mio, "Espresso Point" and Lavazza Blue.