Sustainable coffee company Cafeology has completed a management buyout to give its founding shareholders a partial exit.
Sales director Steve Hampshire and head of operations Joe Cross led the MBO team and acquired a majority stake in the Sheffield-based business.
Founders Andy McClatchey, Toni Unkles and Bryan Unkles will remain involved at the company over the medium term to ensure a smooth transition for customers, suppliers and staff.
The MBO was part-funded using investment from the South Yorkshire Debt Fund.
Established in 2003, Cafeology is an importer, roaster and distributor of premium, ethically sourced coffee. The business has cultivated a customer base spanning universities, major sports venues, independent coffee retailers and cafés and restaurants across the UK.
“The partial MBO allows us to continue with the ethical culture created across the business since our formation in 2003 guaranteeing a clear vision for the future,” Bryan Unkles said.
“It remained integral that we continue to operate from our home in Yorkshire safeguarding the future of all the amazing people behind the company along with our external stakeholders.
“This exciting new chapter will not only underpin Cafeology’s future as an independently owner-operated UK business but also enables sustainable growth with the great involvement of the people who have assisted myself, Andy and Toni over many years. Our journey as a best-in-class coffee company is far from over, and appointing both Steve and Joe to the board will expand our creative thinking further as we continue to build on the solid foundations created over the last 23 years.”
Hampshire added: “After 13 fantastic years with Cafeology, I am incredibly proud and excited to have become a director and shareholder. I’m truly grateful for the opportunities and support I’ve received throughout my journey, and I look forward to contributing to the continued success and future growth of the company.”
Hart Shaw Corporate Finance advised the shareholders of Cafeology on the sale, while Taylor Emmet provided legal advice to the sellers and Dawson Radford worked with the MBO team.
FW Capital manages the £20m South Yorkshire Debt Fund created by the South Yorkshire Pensions Authority to support growing businesses across Barnsley, Sheffield, Doncaster and Rotherham with loans of up to £2m.
Alex Gent, senior investment executive at FW Capital, said: “Businesses like Cafeology are a fantastic example of the strength in South Yorkshire. We’re excited to back a highly experienced and ambitious management team and look forward to supporting Steve and Joe’s growth journey moving forward.
“The South Yorkshire Debt Fund has been designed to improve access to finance and fuel economic growth across the region. This is exactly what the team at Cafeology needed and it is helping them to realise their ambitions and drive forward business success.”
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