Clayton Utz helps brew up $229m cross-border coffee business sale for Suntory

Clayton Utz has confirmed its role as legal advisor to global soft drink company Suntory Beverage & Food Limited (SBF) on the sale of its fresh coffee business in Australia, New Zealand and Singapore to Japan coffee giant UCC Holdings Co., Ltd.

The total consideration of the deal comes in at about $229m, including debt.

“UCC has highly valued the brand strength of our fresh coffee business in Australia, New Zealand and Singapore that has been cultivated under SBF ownership,” SBF CEO Kazuhiro Saito said. “They anticipate further growing the business and brands by leveraging their international experience and capability in coffee roasting and their extensive global distribution channels.”

SBF’s fresh coffee business includes signature brands Toby’s Estate, L’affare, Atomic, Robert Harris and Mocopan; moreover, it has contract roasting operations that cater to the retail and convenience sector. The business is recognised the largest fresh coffee roaster in Australia and New Zealand.

Sydney-based corporate partner Geoff Hoffman led Clayton Utz’s team on the transaction. He was assisted by lawyers Megan Williams and Natasha Cutler.

“The deal reflects ongoing strong investor appetite for quality food and beverage businesses, continuing the trend for the past several years,” Hoffman said.

Both SBF and UCC are based in Japan. The sale is expected to be completed in the first half of the year.

In 2017, Clayton Utz advised SBF as it sold its Cerebos Food & Instant Coffee business (Australia and New Zealand) and its Asian Home Gourmet Singapore business to American multinational food business Kraft Heinz Company for $290m.