Here’s what Sandijs said:
1. What makes the acquired company unique?
Kafe Serviss is a leader in Latvia’s hot drinks and snacks vending. It is a great company with a good network of vending locations across the country, combined with lean operations, good sales, and a very skillful and well-functioning team.
What makes this acquisition special? Several aspects. Firstly, with the acquisition Coffee Address strengthens its vending business segment, essential to further increase the quality of the full range of service offering for the existing and future customers. A larger vending network will enable the utilization of technology and AI-driven tools to improve the efficiency of combined businesses and enhance service quality for our customers. Also, the acquisition of Kafe Serviss makes Coffee Address a market leader not only in Latvia but in the Baltics as well.
Secondly, the acquisition of Kafe Serviss is the 7th M&A transaction completed by Coffee Address. In less than four years seven standalone companies have been merged into one well-functioning entity across the Baltics. During the journey, the company has grown considerably increasing the depth and breadth of the service offering, improving career opportunities of employees, and improving the quality of service to a large and diverse client base. 2. How will BaltCap and its investment help to develop the company further?
With this investment the company operations will be brought to the next level by integrating new technological solutions, increasing the overall efficiency of operations, as well as decreasing the environmental footprint of the business. Also, the former Kafe Serviss people will be able to enjoy an inspiring work environment and employee benefits of a large, modern pan-Baltic company. 3. Main challenges on the way
When you merge great companies, the main challenge is not to lose good people, customers, and the service quality on the way. Not to harm well-functioning parts of the acquired business as there is always time pressure to merge entities and danger of overlooking something along the way.
Also, covid-19 played its part in setting challenges. The transaction was signed in December 2019 and closed almost a year later, on November 2020. Covid - 19 pandemic impacted the decision-making timeline of approval by the Latvian Competition Council and macro-economic uncertainty impacted the finalization of the deal. The dedication and perseverance of the Coffee Address team were remarkable in finalizing the transaction. 4. Key advisors of the deal
The transaction was advised by Oaklins’
Latvian team. Legal advice was provided by law firm Cobalt
- Read more on the transaction HERE