City Capital Ventures Announces the Acquisition of Diedrich Roasters

PONDERAY, Idaho–(BUSINESS WIRE)–City Capital Ventures, LLC (“City Capital”), a private investment
partnership headquartered in Chicago, Illinois, is pleased to announce
it has acquired a majority stake in Diedrich Roasters (“Diedrich”) of
Ponderay, Idaho. The transaction enables founders Stephan and Becky
Diedrich to retire after 35 years of building Diedrich into an iconic
brand in the global coffee industry. The Company will continue to
operate independently under the leadership of current CEO Michael Paquin
and his team. The financial terms of the transaction were not disclosed.

Founded in 1980 by Stephan Diedrich, a pioneer of the specialty coffee
industry, Diedrich is a global leader in manufacturing batch coffee
roasting equipment. Over the past 35 years, the Diedrich name has become
synonymous with roasting great coffee. With its proprietary roasting
technology and highly crafted components, the iconic Diedrich roaster is
the roaster of choice for coffee roastmasters who are serious about
roasting the very best coffee.

“I am very proud of the role Diedrich has played in the development of
the specialty coffee industry into what we know it as today,” commented
Stephan Diedrich. “There is truly no other roaster that roasts like a
Diedrich. I am looking forward to entering the next phase of my life and
seeing Diedrich’s continued success.”

CEO Michael Paquin will lead Diedrich forward into its next phase of
growth, continuing its legacy of uncompromising craftsmanship and
roasting excellence.

“This is a great company. I am proud to have been its CEO for the past
four years and look forward to continuing to build upon the strong
foundation established by Steve and Becky Diedrich,” commented Mike
Paquin. “With their long-term minded, private family capital and
thoughtful strategic approach, City Capital is an ideal partner to help
us achieve the accelerated growth and long-term success that we believe
is possible.”

“We are thrilled to partner with Mike (Paquin) and the entire Diedrich
team to carry on the rich legacy started by Steve and Becky Diedrich
four decades ago,” said Allen Tibshrany, Managing Director of City
Capital Ventures. “We continue to be amazed with the craftsmanship of
Diedrich’s roasters and the power of the Diedrich brand, both
domestically and abroad, and look forward to helping this proud Idaho
company attain new heights in the years ahead.”

This transaction marks the second investment by City Capital Ventures in
2016. “We are excited with the number of compelling investment
opportunities we have seen over the past year. We believe our strategy
of investing in compelling businesses deemed too small by mainstream
private equity firms and corporate acquirers, and supporting them with
“large firm” strategic resources, will serve our investors and operating
companies well over our long-term investment horizons” remarked Dan
Kipp, Founder & Managing Partner of City Capital Ventures.

Lighthouse Ventures, an independent management & investment firm based
in Seattle, collaborated with City Capital to complete the transaction.
KeyBank’s Seattle office provided a senior term loan and revolving
credit facility as part of the transaction.

About Diedrich Roasters

Diedrich Roasters is a global leader in designing and manufacturing
batch coffee roasting systems. Designed and built by craftsman for
craftsmen, Diedrich roasters are constructed from materials of the
highest quality and use proprietary roasting technology that allows
complete and unsurpassed control over the roasting environment, enabling
roastmasters to maximize the distinct flavor of each coffee bean. The
company offers two primary roaster lines – In-Store Roasters (“IR
Series”) with batch capacity up to 12 kilos; and Commercial Roasting
systems (“CR Series”) with capacity exceeding 300 kilos – and all
associated ancillary equipment. To learn more or build your own Diedrich
roaster, please visit diedrichroasters.com,
call 877.263.1276 or e-mail info@diedrichroasters.com.

About City Capital Ventures

City Capital Ventures is an investment partnership whose purpose is to
pair capital with business opportunity in a better, more-tailored way.
Investing on behalf of our exclusive network of family offices, we seek
out firms with innovative business designs and look to invest at
inflection points—not pre-determined stages. Because of our flexible
mandate, our investments are unbound by size or industry, though we
typically invest in consumer, commercial and service businesses
requiring up to $100 million of capital. Our aim is to create lasting
value for our investors, the companies in which we invest, and the
broader stakeholders touched by our companies. For more information,
please visit citycapitalventures.com.

Contacts

Ryan Buhl
City Capital Ventures
ryan@citycapitalventures.com
312.546.8144