Ottawa’s Bridgehead chain sold for $9.5M

• Ottawa’s “biggest little coffee company,” Bridgehead has been sold to the owners of the Second Cup coffee chain in a deal worth $9.5 million.

Bridgehead is Second Cup’s first acquisition under its new corporate entity Aegis Brands, which comes into full effect in 2020.

“Bridgehead is the quintessential ‘ amazing brand’ — a company with a deep sense of purpose, strong roots in its community and an incredible potential for growth,” Aegis Brands CEO Steve Pelton said in the release.

Aegis will pay $ 6 million in cash and $ 3.5 million worth of Second Cup shares. An additional payment of $ 1.5 million will be paid if Bridgehead meets unspecified profit targets over the next two years.

The deal is expected to close this month.

Bridgehead, which has 19 coffeehouses in the capital, was founded in 1981 when two United Church ministers and two social activists concerned for the prospects of small- scale coffee farmers in Nicaragua, formed Bridgehead Trading, the companies said in a release.

Bridgehead became the first company in Canada to offer consumers fairly traded coffee when volunteers sold Bridgehead coffee from church basements. The brand was acquired by OxFam Canada, which diversified the operation to include a broader cross- section of fairly-traded products.

Current owner Tracey Clark bought the brand in 2000, and returned the company to “its roots as a coffee and tea company, with a focus on quality and sustainability.”

“We took ( Second Cup) stock because we’re taking a bet on joining forces,” Clark said Thursday in an interview. Bridgehead and Second Cup will operate as independent brands, reporting to Aegis. Aegis intends to acquire more specialty coffee mini- chains that serve niches well enough to thrive in a very tough industry.

“We have long had a goal of being the biggest little coffee company,” Clark said in the news release.

“Joining Aegis gives us access to the resources to expand our footprint without needing to change who we are or what we do best: advocating for small scale farmers, offering coffee that is well- sourced, well- roasted and well- served, creating a sense of belonging for our customers and employees, and fostering community connections.”

Clark will continue as Bridgehead’s “chief culture officer,” while Ian Clark, director of coffee, and Cliff Hansen, the company’s roastmaster, will continue in their roles. Bridgehead’s head office will remain in Ottawa.

The impetus for Thursday’s announced deal, expected to close before yearend, came from Clark herself. The 55- year- old entrepreneur approached Second Cup early last year about collaborating on a Bridgehead expansion into Toronto.