Shoosmiths has advised the management team of 23.5 Degrees on the equity investment by Connection Capital and bank loan facilities from Royal Bank of Scotland totalling £15.3m to fund the acquisition of 16 new Starbucks stores.
23.5 Degrees Ltd is Starbucks’ first franchisee globally. The company has been allocated a developmental territory including Oxfordshire, Berkshire, Surrey, Hampshire, Wiltshire, Cambridgeshire, Norfolk, Hertfordshire, Essex and Dorset as well as 23 boroughs within the Greater London area.
The investment will help drive forward their ambitions plans for growth. The company currently operates 13 stores with plans to announce further openings by the end of the year. With no restriction on the asset type of stores available, there is potential for significant ongoing expansion throughout the franchise territory.
The deal – which took six months complete – was highly complex with Shoosmiths advising managers Anil Patil, Mark Hepburn and James Garner on the funding and equity arrangements. The Shoosmiths team worked closely with the advisors for all parties, in a collaborative process to achieve a seamless transaction.
Shoosmiths corporate partner, Mark Shepherd, led the deal and was supported by partner Stephen Porter and solicitor Ross Lang (corporate), partner Linda Williams and solicitor Anna Voss (banking) and partner Stuart Lawrenson (employment).
Anil Patil, co-founder and executive director of 23.5 degrees, said: ‘Our management team is grateful for the advice and expertise of Mark and the team at Shoosmiths. This has been a complex and lengthy transaction but their professionalism and collaborative approach to working has ensured a successful deal for all parties.’
Shoosmiths Mark Shepherd, commented: ‘It has been a pleasure to advise 23.5 degrees on such an important deal that is set to more than double the amount of stores they operate in the UK. We wish them all the best in the future and look forward to following their success.’
Shoosmiths’ corporate team has a strong track record of advising public and private companies, management teams, investors and debt providers through the business life cycle. Shoosmiths work with businesses from start-up and first round finance through to mergers and acquisitions, MBO and MBI transactions, development funding and on exits, by way of sale, listing or private equity investment.