MISSISSAUGA, ON, Canada – Aegis Brands Inc. announces that it has completed the sale of substantially all of the assets comprising its specialty coffee brand “Second Cup Coffee Co.” to an affiliate of Montreal-based Foodtastic Inc., an emerging leader in the restaurant franchising industry. The proceeds from the transaction of $14 million 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 closing.
After the transaction, Aegis’ assets include Bridgehead Coffee, an Ottawa-based specialty coffee retailer, and Hemisphere Cannabis Co., its retail cannabis subsidiary. The Company will move ahead with a stronger balance sheet enabling the acceleration of its growth strategy through M&A transactions.
“We look forward to seeing Second Cup continue with Foodtastic,” said Steven Pelton, President and CEO of Aegis Brands. “At Aegis, we are 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,” said Pelton.
“We are very excited to have acquired Second Cup and look forward to expanding the brand throughout Canada,” said Peter Mammas, President and CEO of Foodtastic. “We would also like to thank Aegis for giving us the opportunity and wish them the best with their future endeavors,” said Mammas.
