Target Information

Eastern Tea, located in Monroe Township, New Jersey, has been under the ownership and management of the Barbakoff family since 1982. The company specializes in sourcing, packaging, and blending various types of teas—including black, green, and herbal—under its well-known Bromley brand as well as other private labels. With a workforce of 50 dedicated employees, Eastern Tea is recognized as a significant player in the North American tea market, servicing both retail and foodservice channels.

Industry Overview

The North American tea industry has been experiencing steady growth, driven by increasing consumer interest in health and wellness products. Teas, particularly herbal and specialty blends, are being increasingly recognized for their health benefits, boosting their popularity among diverse demographics.

Moreover, the trend towards premium and organic tea products has further expanded market opportunities. Brands that focus on sustainability and ethical sourcing have found a receptive audience, enhancing their brand loyalty and market penetration.

As a result, the competitive landscape in the North American tea sector is evolving, with both established brands and new entrants striving to innovate and cater to the changing preferences of consumers. This dynamic environment is conducive to growth, offering fertile ground for acquisitions and partnerships.

Given the robust performance exhibited by key players in the industry, the market continues to attract investors, highlighting its potential for profitability and expansion.

Rationale Behind the Deal

The acquisition of Eastern Tea by Everton is a strategic move aimed at solidifying Everton's presence in the North American market. By integrating Eastern Tea's local blending and packaging capabilities, Everton can enhance its operational efficiency and responsiveness to consumer demands.

According to Clessidra Private Equity, the synergy created through this acquisition will optimize various aspects of the business, including sourcing, distribution, and innovative product development, positioning Everton as a leading global entity in the tea and infusions sector.

Information About the Investor

Clessidra Private Equity, based in Milan, Italy, acquired Everton in 2023 and has been pivotal in steering its growth strategy. Everton, headquartered in Tagliolo Monferrato, operates with a workforce of 450 employees and reported nearly €45 million in revenue for 2024.

With a strong focus on producing and packaging both branded and private-label teas, Everton’s operational reach extends across Italy, Croatia, and India, reinforcing its capabilities to meet diverse market demands.

View of Dealert

The acquisition of Eastern Tea presents a promising investment opportunity for Everton and Clessidra Private Equity. By leveraging Eastern Tea's established brand presence and operational capabilities in North America, Everton can accelerate its growth trajectory within this lucrative market.

Moreover, the retention of the Barbakoff family in an advisory role ensures continuity in business operations and strategic insights that could further enhance brand loyalty and market reach.

As consumer preferences increasingly shift towards premium tea products, this acquisition enables Everton to enhance its offerings and innovate its product line, tapping into new consumer segments. The combined strength of both companies positions them favorably to capitalize on market trends.

Overall, the integration of Eastern Tea into Everton's operations is likely to result in significant competitive advantages, setting the stage for sustained growth and increased market share in the North American tea industry.

View Original Article