One of Java Coffee House founders, Rick Ashley, is set to pocket Ksh. 1.3 Billion following a deal by Abraaj Group that has committed to purchase 100 per cent of Java from Private Equity firm ECP which owns 90 per cent and 10 per cent from Rick Ashley in a transaction that has valued the coffee house at Ksh 13 Billion.
The coffee chain now has a total of 60 outlets, with an expanded menu that also features international dishes.
It recently introduced two new brands in the Kenyan market – Planet Yogurt (a self-serve frozen yoghurt chain) and 360 Degrees (a pizza restaurant).
Clearly the world of business is full of surprises.
Java has been valued more than CIC Insurance which is valued at Sh. 10B. The company’s valuation is double that of Kenya Airways. I mean proceeds from Java’s sale can buy two KQs – not planes but two full companies.
The same proceeds can buy over 6 Mumias sugar companies. To me, this sounds like an over valuation.
