By Howard Bryman
Australia-based international home appliance maker Breville Group has acquired the United States-based grinder manufacturer Baratza.
The 88-year old Breville company, founded in 1932 in Sydney, now sells its variety of home kitchen products to customers in more than 70 countries around the world. Its catalog runs the gamut from sandwich grills to ice cream makers, microwaves to blenders. Its coffee equipment offerings are particularly extensive, featuring over a dozen Nespresso brewers, 10 models of consumer espresso machines, four automatic drip brewers and more.
Baratza meanwhile earns the rare designation of being a globally recognized, privately owned brand while remaining dedicated for its entire 21-year existence so far on a single category of product: coffee grinders. It has also achieved worldwide distribution and acclaim for its mostly consumer-oriented products and innovative technology.
The company was among the first to bring a grind-by-weight solution to the consumer market and remains the first to introduce a grinding mechanism based on spinning the exterior ring burr of a conical burr set. The Baratza Forte grinder is a popular model behind professional cafe counters, while many roasting companies also stock various other Baratza models among their selections of home brewing equipment.
“Baratza is currently experiencing incredible growth,” Baratza c.e.o. Kyra Kennedy told STiR Magazine. “By joining forces with Breville, it will enable Baratza to improve our infrastructure around forecasting, production, accounting, inventory, and our shopping cart. All this will improve our ability to increase the production of our reliable, high quality grinders to meet the demand of consumers around the world.”
Kennedy has also emphasized that Baratza will maintain the same team and brand identity, unaffected by the transition into becoming part of a larger corporate group. In its own announcement, Breville made public the terms of the deal through which 100% of ownership was transferred in exchange for a combination of cash and stock amounting to US$60 million.
Approximately US$43m was paid in cash, plus US$17m in the form of 884,956 shares in Breville stock. Breville has been a publicly traded company in Australia since 1999.
“We are excited by the opportunity to bring Baratza into the Breville family," Breville Group c.e.o. Jim Clayton said in the announcement. "Our combined experience will unlock dynamic revenue synergies for both businesses, that share a passion for innovation and an unwavering commitment to enhancing the consumer experience.”