CANADA
Aegis Brands is buying Ottawa-based Bridgehead Coffee, a 19-store retail chain. The $9.5 million acquisition brings Bridgehead under the same company umbrella as Canadian specialty coffee retailer Second Cup.
“Bridgehead is the quintessential ‘amazing brand’ - a company with a deep sense of purpose, strong roots in its community and an incredible potential for growth,” Aegis Brands c.e.o. Steven Pelton said in December. “We’re so excited to work with the team at Bridgehead to help fuel that growth in the months and years to come.”
All 19 of Bridgehead’s corporately owned coffeehouses serve food made daily from scratch in the company’s kitchen and bakery. The stores “have consistently delivered strong financial results in a competitive coffee market,” Aegis stated, and will continue to operate under the Bridgehead name.
Under the agreement, Aegis will pay $9.5 million at closing, of which $6.0 million is cash and $3.5 million is payable in Second Cup shares. Additional payments will be made based on Bridgehead’s profitability during the next two years. If profit targets are achieved, the payments would total another $1.5 million.