Philz Coffee to be Acquired by Freeman Spogli in Strategic Deal.

Philz Coffee, a specialty coffee brand with 77 cafes across California and Chicago, has reached a definitive agreement to be acquired by Freeman Spogli, a strategic growth investor. The acquisition is expected to close on August 6, 2025, and Philz Coffee will continue to operate under the leadership of CEO Mahesh Sadarangani. Freeman Spogli has a history of partnering with consumer brands and is committed to preserving and building upon Philz's heritage.

Philz Coffee, a well-known specialty coffee brand with 77 cafes across California and Chicago, has entered into a definitive agreement to be acquired by Freeman Spogli, a strategic growth investor. The acquisition is expected to close on August 6, 2025, with Philz Coffee continuing to operate under the leadership of CEO Mahesh Sadarangani [1].

Founded in 2003 in San Francisco, Philz Coffee specializes in customized blends made from sustainably sourced green coffee beans and is renowned for its personalized, made-to-order drinks and welcoming cafe culture. Over the past two decades, the brand has grown significantly, expanding its footprint to 77 cafes across California and Chicago [1].

Freeman Spogli, a private equity firm with over four decades of investment experience, has a proven track record of supporting and scaling consumer brands. The firm has invested in various successful businesses, including Boot Barn, El Pollo Loco, First Watch, Floor & Decor, and Popeyes Chicken [1]. Freeman Spogli is committed to preserving and building upon Philz's rich heritage, with a focus on maintaining the brand's unique, authentic coffee experience [1].

The acquisition is expected to accelerate Philz Coffee's growth, particularly in the attractive and growing specialty coffee category. Mahesh Sadarangani, who joined Philz in 2021, and the existing leadership team will continue to lead the company, ensuring that its customer-focused approach remains at the heart of its vision [1].

Piper Sandler & Co. acted as the exclusive financial advisor to Philz Coffee, while Kirkland & Ellis LLP served as its legal counsel. Morgan, Lewis & Bockius LLP acted as legal counsel to Freeman Spogli [1].

References:
[1] https://finance.yahoo.com/news/philz-coffee-partners-freeman-spogli-164600141.html