Philz Coffee Acquired by Private Equity Firm, Plans New Store Openings and Job Preservation.

Philz Coffee, a California-based coffee chain with 77 locations, is being acquired by private equity firm Freeman Spogli. The deal is expected to close on August 6. Philz Coffee has announced that it will not close any stores or cut jobs, and has a pipeline of new store openings planned. The company's entire existing corporate leadership will remain with the company through the acquisition.

Philz Coffee, a California-based coffee chain with 77 locations, has been acquired by private equity firm Freeman Spogli. The transaction is expected to close on August 6, 2025, according to a press release issued by both parties. The acquisition will not result in any store closures or job cuts, and the company has a pipeline of new store openings planned for the next 24 months.

The current leadership team, including CEO Mahesh Sadarangani, will continue to lead the company through the acquisition. Philz Coffee has been backed by private equity for over a decade, and this acquisition is not expected to bring significant changes to the brand. The company has set up an FAQ website to address employee concerns, assuring them that benefits, pay, raises, hours, and promotions will continue as they have historically.

As part of the acquisition, Freeman Spogli will pay a thank you bonus to each employee in the stores, roasting facility, and home office. However, a number of former employees who purchased stock at a higher price some years ago will lose the value of their investments. The size of the thank you bonus was not disclosed.

Freeman Spogli has invested in various restaurant concepts over the years, including El Pollo Loco, Popeyes, and First Watch. The firm's experience in the restaurant industry makes it an ideal partner for Philz Coffee, which is looking to expand its store count. The acquisition comes at a time when the restaurant industry is seeing a high level of merger and acquisition activity, despite macroeconomic headwinds [1].

References:
[1] https://www.restaurantdive.com/news/philz-coffee-bought-private-equity-firm-freeman-spogli/756746/
[2] https://finance.yahoo.com/news/philz-coffee-partners-freeman-spogli-164600141.html
[3] https://finance.yahoo.com/news/philz-coffee-sold-private-equity-160243798.html