Patisserie Valerie to merge with Bakers + Baristas
Causeway Capital Partners says the combined company will have over 125 sites in the UK and Ireland, with each brand keeping its own identity and in-store offering.
It will be led by current Bakers + Baristas CEO James Fleming, who previously headed up the Paul café chain.
Causeway says the merger will allow both companies to benefit from shared ‘baking, coffee and customer service resources’ and new product development, as well as additional investment in new store openings.
“We look forward to continuing supporting the development of these two distinctive brands and the continued growth of the group,” says Matt Scaife, partner at Causeway.
Causeway bought 96 of Patisserie Valerie’s sites out of administration in 2019 after the café chain’s parent company, Patisserie Holdings, collapsed following the discovery of a multi-million-pound black hole in its accounts.
It has since closed a further 14 underperforming cafes and spent the past year investing in a revamp of the chain with the introduction of new branding and packaging and an overhaul of the menu to move away from frozen and microwaved dishes.
Bakers + Baristas was backed by Causeway in 2015 and has around 65 cafes in shopping malls and retail parks across the UK and Ireland. Its sales have grown from £11m in 2015 to £22m in 2019.
Patisserie Valerie's retail MD Paolo Peretti and production MD Jose Peralta, who have overseen the turnaround of the busines, will support the new executive team during a transitional period.
