Australian multinational small appliance seller Breville Group has acquired United States-born grinder maker Baratza for $60 million USD, including $43 million in cash and $17 million worth of Breville shares.
Baratza Co-Founders Kyra Kennedy and Kyle Anderson, who founded Baratza 21 years ago while splitting the business between the Seattle area and the Bay Area with manufacturing in Taiwan, announced the news through the Baratza website late yesterday.
“In Breville Group, we are confident we have found a partner with shared values for customer care and a passion for product innovation and enhancing the specialty coffee experience,” the duo wrote. “We look forward to combining our strengths in design and customer support, while continuing to maintain our uncompromising focus on quality and customer care, to create a dynamic new vision for our business.”
Baratza has been privately owned since its inception. Founded in Sydney in 1932, Breville has been listed on the Australian stock exchange since 1999, and it launched in the United States in 2002. The company produces a broad range of small kitchen appliance with particular emphasis on the home coffee segment through products such as Nespresso-compatible machines, automatic drip brewers, blade grinders and entry-level espresso machines.
“We are excited by the opportunity to bring Baratza into the Breville family,” Breville Group CEO Jim Clayton said in a public filing made this morning. “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.”
Baratza has been a pioneering company in the production of burr grinders for drip coffee and/or espresso that balance elements of commercial-level quality and ingenuity with consumer-level affordability.
The company’s Encore and Virtuoso grinders are considered workhorse options for home brewers, while its Sette, Vario and Forté models delve into more advanced features. In 2011, the company introduced grind-by-weight technology into the marketplace. Most recently, the company launched a new accessory line under the name Baratzagear.
A Baratza spokesperson told DCN that Anderson, Kennedy and the rest of the Baratza staff will remain in their current positions and locations.
“While we are now part of a larger group, we are the same team and brand,” Kennedy and Anderson wrote yesterday evening. “Staying true to who we are, while growing in a global marketplace, will enable us to continue to shape our future and place as one of the most admired and trusted brands in specialty coffee.”