Business strategy

Success story

Selling a Russian coffee/tea business

Companies consider selling a stake in their business for various reasons, such as the desire to find a strong partner to develop the business, succession considerations or for monetary reasons. In any scenario, the help of a professional advisor in managing the process is important to properly execute the sale and achieve the goals of the shareholders.

Project overview

The company is one of the established tea and coffee producers in Russia, which has successfully developed the business over the last 15 years. It sells tea and coffee under its own brand and is particularly strong in the regions. The company felt the need to find a strong strategic partner to develop its business and withstand competition from multinational competitors who have entered the Russian market over the last few years.

Results

PricewaterhouseCoopers was hired as exclusive financial advisor to the shareholders to find the right partner for the future development of the company and to secure the desired consideration for the selling shareholders.

As a result of the successfully conducted auction process, the company partnered with two strong international players, which will allow the company to develop its business further and to seize current opportunities to increase its market share.

This transaction was negotiated during the crisis. Despite this, the price secured for the selling shareholder represents pre-crisis pricing. Another important input from PricewaterhouseCoopers was to give the buyers comfort to go ahead with the transaction despite the current market uncertainties.

The founder and remaining shareholder of the business will continue to run the company.