General Atlantic takes controlling stake in Joe & the Juice

Stay informed with free updates

Simply sign up to the Private equity myFT Digest — delivered directly to your inbox.

US private equity firm General Atlantic has agreed to take a controlling stake in Joe & the Juice, increasing its investment seven years after initially putting money into the Danish sandwich chain.

General Atlantic is increasing its interest in the company from about 30 per cent to as much as 90 per cent in a deal valuing Joe & the Juice at about $600mn, according to a person familiar with the matter.

The transaction will see existing shareholders, including Swedish investment firm Valedo Partners, cash out. The investment will be used to reduce Joe & the Juice’s debt load and help the company expand into markets such as the US, the person added.

The deal highlights private equity’s continuing interest in high-street food chains despite a mixed record in the space. Private equity-backed chains such as Prezzo and Côte Restaurants have had to undergo restructurings to stay afloat. Burger chain Byron Burgers has also suffered financial difficulties.

Founded in Copenhagen in 2002, Joe & the Juice sells juices, coffee and sandwiches made of natural ingredients. The chain has expanded rapidly in recent years with the help of private equity money, more than quadrupling its revenue since 2016 as a growing number of consumers choose businesses that emphasise organic and sustainably sourced ingredients.

Since General Atlantic first invested in 2016, the company has doubled the number of stores it owns to more than 360 globally. Some of this growth has been driven by its expansion in the US where it now has about 70 stores, up from less than five when General Atlantic first invested.

The company wants to expand its presence in other international markets, including the UK, Europe and the Middle East, where it owns 23 franchised stores.

Joe & the Juice has also built out its digital business, which now accounts for 30 per cent of its sales.

General Atlantic, which manages more than $77bn, is best known for backing fast-growing technology and consumer companies, including TikTok’s parent company ByteDance.

The group has expanded its business recently after acquiring private credit firm Iron Park as well as a stake in a company that buys second-hand stakes in private equity funds.