Premium food and drink distributor sells UK coffee business

The Northampton-based distributor of premium food and drink brands, Euro Food Brands, has sold its UK illy division distribution business to Italian coffee company illycaffè SpA.

The disposal includes the transfer of business, assets and staff responsible for the distribution of illy coffee products in the UK, although Euro Food Brands will continue to manage the supply of all retail and ecommerce retail customers on illycaffè’s behalf.

The Italian firm will now directly manage its UK distribution operations, signalling its intention “to keep on investing in the United Kingdom, despite Brexit uncertainties.”

The deal, advised on by law firm Howes Percival, involved the reorganisation and restructuring of the Euro Food Brands business in order to demerge the illy coffee business.

Gerald Couldrake, partner and head of Howes Percival’s Northampton corporate and commercial team, said: “We are delighted to have advised the shareholders in relation to this complex transaction, which allows EFB to continue to distribute illy coffee into UK retailers for the foreseeable future.”