Sterling Group is believed to have paid Rs 30 crore (Rs 300 million) for acquiring the entire 65.45 per cent stake of Turner Morrison in Barista Coffee outlet chain.
Tata Coffee, a 100 per cent subsidiary of Tata Tea, would continue with its 34.1 per cent stake in Barista, acquired in 2001 for Rs 26 crore (Rs 260 million).
When contacted, Yogesh Samat, CEO of Barista Coffee Company, told PTI: "For us, the deal is positive. We are going to gain out of it as Sterling has allied interest."
He, however, refused to comment on the financial aspects of the deal.
The Chennai-based firm, promoted by non-resident Indian businessman C Sivasankaran, runs its own coffee vending machines from which it earns revenues of about Rs 50 crore (Rs 500 million).
"Ownership and management of Barista will be segregated. With the change in ownership pattern, management of the company will remain the same and the strategies will also remain the same," Samat said.
At present, Barista, which began its coffee retailing business in 2000, has 130 retail outlets. The company is also in the process of rationalising the number of its outlets rather than expanding the joints further.
Barista has opted for franchisee route with greater focus on consolidation rather than expansion.