Philz Coffee Sold to Private Equity Firm Freeman Spogli for $145 Million

Philz Coffee will be acquired by private equity firm Freeman Spogli, with the transaction expected to close on August 6. The 77-unit coffee chain will continue to operate under the leadership of CEO Mahesh Sadarangani, who joined the brand in 2021. Terms of the deal were not disclosed, but Mission Local reported that Philz was in the process of selling itself for about $145 million.

Title: Philz Coffee Acquired by Private Equity Firm Freeman Spogli

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, and Philz Coffee will continue to operate under the leadership of CEO Mahesh Sadarangani.

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://www.ainvest.com/news/philz-coffee-acquired-freeman-spogli-strategic-deal-2508/
[2] https://finance.yahoo.com/news/philz-coffee-partners-freeman-spogli-164600141.html
[3] https://www.nrn.com/mergers-acquisitions/philz-coffee-acquired-by-freeman-spogli-investment-firm
[4] https://finance.yahoo.com/news/philz-coffee-sold-private-equity-160243798.html