Private equity firm General Atlantic announced Monday that it will acquire a majority interest in Joe & the Juice, a growing beverage chain with stores around the world.
The company bought out Valedo Partners, which will fully exit its investment in the restaurant chain. The transaction is expected to close in the fourth quarter.
General Atlantic, which initially made a minority investment in October 2016, has three priorities for Joe & the Juice: accelerate expansion in international markets, capitalize on customer demand, and build digital channels. The capital will also be used to reduce debt.
“We are delighted to have General Atlantic’s expanded commitment to Joe & the Juice. Over the past seven years, General Atlantic has demonstrated a true dedication to collaboration as we have worked together to achieve our growth aspirations,” CEO Thomas Noroxe said in a statement. “As we make strides into our next chapter, we look forward to bringing Joe & the Juice to more customers globally through our focus on geographic expansion, franchising, and a seamless omnichannel experience.”
Since General Atlantic put dollars into the brand, Joe & the Juice has grown revenue by more than 4x and doubled its store footprint. The beverage concept has 360-plus locations worldwide, up from 175 in 2016. Additionally, the partnership with General Atlantic led to the creation of digital channels, which now account for 30 percent of sales.
Joe & the Juice told QSR last year that it had dreams of reaching 600 units by 2025, with 200 more in Europe and 100 domestically. Revenue increased $80.2 million to $165.3 million in 2022.
There were fewer than five U.S. units when General Atlantic got involved seven years ago, but now there are around 70 stores. The brand is based in some of the biggest DMAs the country has to offer, like New York City, Los Angeles, Chicago, Miami, and Washington, D.C. Along with the U.S., other key growth markets include the U.K. and Europe, the Middle East, Asia, and Latin America. Joe & the Juice built a budding franchise business in the Middle East with 23 stores, and the chain is looking to expand that program globally.
“As a long-term partner to Joe & the Juice, General Atlantic is proud to become a majority investor in the brand and continue our collaboration with the management team. Joe & the Juice’s business momentum is inflecting, and we are excited to build on the Company’s digital traction and accelerate company-owned and franchised unit growth,” Andrew Crawford, General Atlantic’s managing director and global head of consumer, said in a statement.
Joe & the Juice was founded 20 years ago by Kaspar Basse in Copenhagen, Denmark. The brand sells juices, shakes, sandwiches, and coffee in an urban and modern environment.
Other General Atlantic investments include Torchy’s Tacos and Absolute Barbecue, a casual-dining chain based in India and the Middle East.
“Our increased investment in Joe & the Juice is a testament to the global receptivity of the brand. Joe & the Juice reflects broader secular trends of convenience and healthy living, while also possessing a brand which resonates with customers in multiple markets. We see further runway to double down on our commitment and unlock the business’s full potential,” Melis Kahya Akar, General Atlantic’s managing director and head of consumer for EMEA said in a statement.