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Turin, Italy/Mclean, VA (December 27, 2018) – Today the Lavazza North America Inc. finalized the agreement – as already communicated last October 1st - to acquire Mars’ coffee businesses, including the Flavia and Klix systems, leading brands in the Office Coffee Service (OCS) and Vending segments. The new name of the acquired business becomes Lavazza North America Inc.

Through this deal, the Lavazza North America Inc., in accordance with its strategy of consolidation at the international level, has acquired Mars’ coffee businesses in North America, Germany, the UK, France, Canada and Japan, including its related systems and its production facilities in the UK and United States.

Lavazza North America Inc. includes the Flavia tabletop machines business and the Klix Vending machine business, which boast a machine park installed throughout their markets of operation, and a broad portfolio of coffee and other beverages commercialized under both proprietary brands (e.g. Alterra) as well as through licensed brands.

The businesses involved in the acquisition generated a turnover of approximately US$350 million in 2017, and has a workforce of approximately 900 people.

In line with its previous acquisitions — Carte Noire and ESP in France, Merrild in Denmark, Kicking Horse Coffee in Canada, NIMS in Italy and Blue Pod Coffee in Australia — Lavazza intends to strengthen its direct coverage of all segments of the coffee markets concerned, with a particular emphasis on Away-from-Home, according to an approach based on increasingly direct interaction with consumers.

Lavazza was advised by J.P. Morgan, Cleary Gottlieb Steen & Hamilton, PwC and The Boston Consulting Group. Mars, Incorporated was advised by BofA Merrill Lynch, Freshfields Bruckhaus Deringer LLP, KPMG LLP and Rabo Securities USA.

About Lavazza Group

Established in 1895 in Turin, the Italian roaster has been owned by the Lavazza family for four generations. Among the world’s largest coffee companies, the Lavazza Group currently operates in more than 90 countries through subsidiaries and distributors, with 63% of revenues coming from markets outside of Italy. Lavazza employs a total of about 3,000 people generating a turnover of more than €2.0 billion in 2017. Lavazza invented the concept of blending — or in other words the art of combining different types of coffee from different geographical areas — in its early years introducing its consumers to flavor consistency as well as innovation, and these continue to be distinctive features of most of its products.

With over 25 years of experience Lavazza was also a pioneer in the production and sale of portioned coffee systems and products, being the first Italian company to offer capsule espresso systems. Lavazza operates in all business segments: at home, away-from-home and office coffee service, always with a focus on innovation in consumption technologies and systems. For more information please visit www.lavazza.com.

About Mars, Incorporated

Mars is a family-owned business with more than a century of history making diverse products and offering services for people and the pets people love. With over $35 billion in sales, the company is a global business that produces some of the world’s best-loved brands: M&M’s®, SNICKERS®, TWIX®, MILKY WAY®, DOVE®, PEDIGREE®, ROYAL CANIN®, WHISKAS®, EXTRA®, ORBIT®, 5™, SKITTLES®, UNCLE BEN’S® and COCOAVIA®. Mars also provides veterinary health services that include BANFIELD® Pet Hospitals, Blue Pearl®, VCA® and Pet Partners™. Headquartered in McLean, VA, Mars operates in more than 80 countries. The Mars Five Principles – Quality, Responsibility, Mutuality, Efficiency and Freedom – inspire its more than 115,000 Associates to create value for all its partners and deliver growth they are proud of every day.

For more information about Mars, please visit www.mars.com. Join us on Facebook, Twitter, LinkedIn, Instagram and YouTube.

For further information:


Giuliana Paoletti, Simona Raffaelli | +39 02 89011300 | lavazza@imagebuilding.it

Marilù Brancato | marilu.brancato@lavazza.com
Edoardo Fulio Bragoni | edoardo.fuliobragoni@lavazza.com
+39 011 234 8377

Alison Clark | +44 7831 154204 | alison.m.clark@effem.com
Róisín Pope | +44 7807 15025 | roisin.pope@effem.com

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