Sheffield-based Cafeology has completed a management buy-out, enabling continuity, growth and the continued commitment to fair trade and sustainable coffee sourcing.
Funding to support the MBO comes via the South Yorkshire Debt Fund which is managed by FW Capital. on behalf of South Yorkshire Pensions Authority.
Hart Shaw Corporate Finance advised the shareholders of Cafeology Limited on the sale of a majority stake in the business to its senior management team. The transaction secures the long-term future of one of the UK's most respected ethical coffee businesses while enabling its founders to realise value after more than two decades of ownership.
Established over 20 years ago, Cafeology has built an enviable reputation as an importer, roaster, and distributor of premium, ethically sourced coffee. From its earliest days, the company has been a pioneer in fairtrade, ethical and sustainable sourcing, long before these principles became mainstream, and has cultivated a loyal customer base spanning leading universities, major sports venues, independent coffee retailers and cafes and restaurants across the UK.
The MBO team is led by Steve Hampshire, Head of Coffee, and Joe Cross, Head of Operations; two individuals whose expertise and passion have been central to Cafeology's growth and reputation. The founding shareholders will remain involved over the medium term, providing continuity and ensuring a smooth transition for customers, suppliers and staff alike.
The MBO was part-funded using significant investment from the South Yorkshire Debt Fund which is managed by FW Capital. This comes from the £20million fund that was created by the South Yorkshire Pensions Authority to support growing businesses across Barnsley, Sheffield, Doncaster and Rotherham with loans of up to £2million.
Having each dedicated more than 20 years to building the business, the key shareholders, Andy McClatchey, Toni Unkles and Bryan Unkles decided the time was right to explore their strategic options.
Steve Hampshire, Sales Director, Cafeology Limited said: “After thirteen 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.
Bryan Unkles, Co-Founder, Cafeology Limited said: "The partial MBO allows us continue with the ethical culture created across the business since our formation in 2003 guaranteeing a clear vision for the future. 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 new exciting chapter will not only underpin Cafeology’s future as an independently owner operated UK business but also enables sustainable growth with a great involvement of the people who have assisted myself, Andy and Toni over many years.”
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 It was also great to work with the team at Hart Shaw Corporate Finance again.”
Andrew Stone, Assistant Director - Investment Strategy at South Yorkshire Pensions :“The SYPA team is delighted to be able to support local businesses like Cafeology whilst getting the returns we need to pay our pensioners. We look forward to hearing about the company’s future developments and drinking its coffee.”
