Second Cup just bought a local coffee chain for $10 million

Aegis Brands, the parent company of Second Cup Coffee Co., just announced that they've agreed to acquire popular Ottawa-based Bridgehead Coffee for $9.5 million. 

The Second Cup Ltd. announced its new operating structure and strategy last month, and this is the company's first acquisition since that announcement. 

Bridgehead has nineteen coffee shops in Ottawa, including its landmark Roastery, and each location serves fresh food made daily in addition to their fair trade and organic coffees. 

Their head office will remain in Ottawa following the acquisition.

"We created Aegis with the vision of building a portfolio of amazing brands that can grow and flourish with access to our resources and expertise," said Steven Pelton, CEO of Aegis Brands, in a statement. 

"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. We're so excited to work with the team at Bridgehead to help fuel that growth in the months and years to come."

All nineteen locations are corporately-owned and will maintain their original names. 

According to the statement, of the $9.5 million that Aegis Brands is set to pay, $5 million is cash and $3.5 million is payable in Second Cup shares. 

The statement also explains that any additional earn out payments will be made based on the profitability of Bridgehead's existing coffeehouses over the next two years. If profit targets are achieved, the payments would total an additional $1.5 million. 

The transaction is expected to close later this month.

In terms of leadership roles, current COO of Bridgehead Kate Burnett will assume executive leadership of the company while Tracey Clark, Bridgehead president and CEO, will hold a new role as Chief Culture Officer. 

"Aegis Brands will offer Bridgehead opportunities in real estate and capital that we would not have been able to access on our own, and give us the autonomy to grow our business according to our values," said Clark.

"This partnership also presents incredible opportunities for our team, who are as excited as I am to serve new communities here in Canada, and to expand upon Bridgehead's positive impacts in coffee growing communities."

Lead photo by

Hector Vasquez

Join the conversation Load comments

Latest in Food & Drink

This Canadian city is known as the Slurpee Capital of the World

Kraft drops pumpkin spice KD in Canada and people don't know what to think

The history of the Sourtoe Cocktail and how it became Canada's most unusual drink

How the Deep'n Delicious cake became a cult favourite in Canada

How Habitant pea soup became a grocery store staple in Canada

The secret to great poutine according to the founder of Smoke's Poutinerie

The history of Canadian butter tarts and how they've changed since the first recipe

The cult of Kraft Dinner in Canada and the weird recipes people make