Aegis Brands announces agreement to sell assets of Bridgehead Coffee
by CM Staff
The transaction has been approved by the directors of Aegis Brands and a special resolution of Bridgehead and is expected to close in the first quarter of 2024.
TORONTO — Aegis Brands Inc. announces that its wholly-owned subsidiary, Bridgehead Inc. has entered into an agreement of purchase and sale with Pilot Coffee Group of Companies. The agreement is to sell the assets of its roasting, wholesale and coffeehouse business, excluding certain specified assets, for a purchase price of $3,500,000 in cash and the assumption of certain liabilities.
“This strategic divestiture allows us to build on the momentum of the St. Louis brand. In Q4 2023, St. Louis increased same store sales by 9.4% and has further improved on this trend thus far in 2024. We know there is significant growth yet to be realized with this brand and we are focused on creating shareholder value with this great asset” said Steven Pelton, President and CEO of Aegis Brands. “We are equally committed to our new St. Louis spinoff concept, Wing City, which opened its first Toronto location in late December and will open its second in February.”
“Pilot Coffee Roasters is so very excited that Bridgehead will be joining our family. 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 Bridgehead’s focus on organic coffee, it will strengthen even more our exceptional range of specialty coffee products and services to our customers across Canada” said Bruce Miller, CEO of Pilot Coffee Roasters. “With both brands in the portfolio it will bring the company to its continued goal of being Canada’s leader in specialty coffee. We look forward to continuing to build on the legacy of both trusted brands and delivering exceptional coffee experiences to all our customers as we embark on this new journey together.”
The transaction has been approved by the directors of Aegis Brands and a special resolution of Bridgehead and is expected to close in the first quarter of 2024. Proceeds from the transaction will be used to reduce debt and for general working capital purposes.
