Starbucks buying Pasqua Coffee
SEATTLE (AP) _ Starbucks Coffee Co. is buying Pasqua Coffee Co., a closely held company that operates 56 cafes in California and New York.
The value of the all-cash deal was not disclosed, although analysts estimated it at around $25 million. In addition to the cafes, Starbucks will acquire Pasqua’s coffee roaster in San Francisco, three commissaries where food is made and two bakeries. The deal is expected to close in February.
Founded in 1983, Pasqua, based in San Francisco, had visions of growing big on its own.
``Many of us on the board had wanted to be the No. 2 specialty coffee company (behind Starbucks) in the industry,″ said Pasqua’s chief executive, Martin Kupferman.
Last year, Pasqua announced a merger with New York-based Coffee Station, but that deal fell apart due to disagreements over financing.
Pasqua’s sales this year have been flat at about $26.5 million, Kupferman said. Starbucks’ revenues last year were $1.3 billion.
Starbucks owns more than 1,700 coffeehouses nationwide. The company does not currently intend to close any existing Pasqua cafes, even in areas where the two companies have stores within a block or two of each other.