West Sussex-based Kafevend has been sold to trade buyer Eden Springs for a 2.5x return on investments made by ISIS Equity Partners.
The private equity-backed company was first supported by ISIS Equity Partners back in October 2005, when a management buy-out (MBO) separated it from parent company IKON Office Solutions – which bought the business in 1996.
Since then, the water and coffee services for the workplace business has grown to a turnover of £20 million and 100 staff.
Acquiring company Eden Springs is headquartered in Switzerland and also provides water coolers and coffee machines to businesses.
As part of the deal, Kafevend CEO John Collins, who led the 2005 MBO, will be joining Eden UK as commercial managing director following the completion of the deal.
Collins comments, ‘Kafevend has had a long and supportive relationship with ISIS during which time the company has gone from strength to strength.
‘Becoming part of Eden Springs at this stage in Kafevend’s development will be an excellent opportunity for the business, our people and our customers.’
With the initial ISIS investment being made through its Baronsmead VCTs, the exit of Kafevend represents a 2.5x return and IRR of 13.8 per cent for clients.
The last exit to be closed by ISIS was in December when it sold Encore Tickets to ECI Partners as part of a secondary MBO.
More on ISIS exits during 2013:
Benoit Broch, investment director at ISIS, says, ‘We wish the management team every success in their new home at Eden, where there is a significant opportunity for further growth in the workplace drinks market.
‘Kafevend has been a success story in our investment period in which continued growth has been achieved and market leadership established.’