Reborn Coffee to acquire specialty coffee shop and roasting R&D facility in Daejeon
Reborn Coffee, a specialty coffee retailer based in California, has inked a binding letter of intent (LOI) for acquiring a specialty coffee shop and a roasting research and development (R&D) facility located in Daejeon, South Korea.
The acquisition is part of the Nasdaq-listed Reborn Coffee’s global expansion plan.
According to Reborn Coffee, the coffee shop and roasting R&D facility have a strong customer base and are situated in a prime site.
The two assets, which have a total space of more than 2,000sft, have a roaster and a coffee extractor. The present annual sales from the shop and facility are around $400,000 per year.
Reborn Coffee to acquire specialty coffee shop and roasting R&D facility in Daejeon, South Korea. Photo courtesy of Liselle VD from Pixabay.
Reborn Coffee will look to convert the coffee shop and R&D facility to a flagship location and Reborn concept. The specialty coffee retailer expects to boost current sales with strategic marketing campaigns and via direct support from its American operations.
Besides, Reborn Coffee will launch in-house production of Reborn cookies and macaroons.
Jay Kim — Reborn Coffee CEO said: “This acquisition in South Korea marks the beginning of Reborn’s global growth strategy.
“South Korea is one of the most dynamic markets within the Asia-Pacific region and coffee is one of the most popular beverages in the country. Establishing a flagship coffee shop and R&D facility in Daejeon positions us to introduce our brand in a major urban area and the location serves as an ideal launchpad for our franchising program.”
Reborn Coffee said that the completion of any possible deal is contingent on final due diligence, negotiation, and signing of a definitive agreement and all the required approvals. The specialty coffee retailer anticipates wrapping up the acquisition of South Korean assets by the middle of January 2023.