The deal includes Bridgehead Coffee’s Ottawa roasting facility, 22 retail stores and wholesale channel and is expected to close in the first quarter of 2024, marking parent company Aegis Brands’ exit from the Canadian coffee shop market
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Bridgehead Coffee currently operates 22 stores across Ottawa | Photo credit: Bridgehead Coffee
Toronto-based Aegis Brands has agreed to sell its Bridgehead Coffee business to Pilot Coffee Roasters for CA$3.5m ($3.6m).
The deal will see Canadian specialty coffee roaster and café chain Pilot Coffee Roasters assume ownership of Bridgehead Coffee’s roasting facility, 22 retail stores in Ottawa and wholesale channel. Pilot Coffee Roasters currently operates 11 outlets across Toronto, alongside a roastery, cold brewery and training lab.
“Bridgehead and Pilot Coffee Roasters share the same core values of offering customers world-leading specialty coffee and giving back into the communities in which they serve, both locally and globally. With both brands in the portfolio, it will bring the company to its continued goal of being Canada’s leader in specialty coffee,” said Bruce Miller, CEO, Pilot Coffee Roasters.
Bridgehead Coffee posted sales of CA$11.7m ($8.7m) in the first nine months of 2023.
The Ottawa-based coffee roaster and café chain was acquired by Aegis Brands for CA$9.5m ($6.9m) in January 2020. The deal marks Aegis Brands’ exit from the Canadian branded coffee shop market, following the CA$14m ($11.4m) sale of Second Cup Coffee Co. to restaurant franchise group Foodtastic Inc. in April 2021.
The transaction is expected to close by the end of the first quarter of 2024. Proceeds from the deal will be used to reduce Aegis Brands’ debt and for general working capital purposes. It will also enable the group to grow 78-store fast-food chain St. Louis Bar and Grill, its sole remaining brand.