SA Brain & Co has sold what was its remaining minority stake in coffee shop venture Coffee#1.
The Cardiff-based family-owned business sold a majority stake in Coffee#1 to Caffe Nero in 2019.
Set up originally by entrepreneur James Shapland in 2000, it was acquired by SA Brain & Co in what is understood to have been a £15m deal in 2011.
Since then Coffee#1 has expanded to more than 100 stores across Wales and England.
The deal to acquire SA Brain’s minority stake comes after Caffe Nero concluded a £330m debt refinancing last month, which saw off a takeover bid from the Issa brothers’ EG Group.
The value of its latest deal with SA Brain has not been disclosed.
Gerry Ford, group chief executive of the Nero Group, said: “We’ve been delighted with the performance of the Coffee#1 business since it joined our group in 2019. It is a fantastic brand with an emphasis on great coffee and service combined with a local community-based feel, which matches perfectly with the ethos of the Nero Group.
"As we emerge from the pandemic, our intention is to return to growing stores in our group and investing in growth opportunities. Coffee#1 is very much part of that thinking. Acquiring Brain’s remaining position is the first step of this post-refinancing growth phase.”
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The group said Coffee#1 has averaged 104% of pre-pandemic sales over the last four months.
In 2020 SA Brain & Co entered into a deal with pub company Marstons, which saw the latter taking on long-term leases to operate more than 150 Brains pubs.
There is speculation that the SA Brain is close to selling the freehold interest in 100 of its pubs in a £100m deal to a consortium including Song Capital and Cerebus Capital Management. The marketing of its pub portfolio is being overseen by property advisory firm Avison Young. SA Brain said it didn’t comment on market speculation
Post any deal it would leave SA Brain will just a small portfolio of freehold pubs, alongside its brewery operation in Cardiff Bay.