PR Newswire
Beloved coffee brand prepares to expand while staying true to its roots and mission
OAKLAND, Calif.
, Aug. 4, 2025 /PRNewswire/ — Philz Coffee, a beloved specialty coffee brand known for its personalized, made-to-order drinks and welcoming cafe culture for more than 20 years, has entered into a definitive agreement to be acquired by Freeman Spogli, a strategic growth investor in the consumer services and multi-unit industries. The transaction is expected to close on Aug. 6, 2025.
Philz will continue to be led by CEO Mahesh Sadarangani, who first joined Philz in 2021, and the existing leadership team. Philz’ management, team members, and customer-centered values remain at the heart of its vision. Specific terms of the transaction were not disclosed as part of the announcement.
Philz Coffee was founded in 2003 in San Francisco by Phil Jaber and his son Jacob, who transformed a corner store into a welcoming neighborhood cafe. Over two decades, the Jabers built a business centered on quality products and personal connection.
What began as a single cafe in the Mission District has grown to 77 cafes across California and Chicago, with an integrated customer experience via its wholesale and online business segments. Philz’ reputation for exceptional coffee quality is upheld through its local roasting facility located in Oakland, California, which supplies all its stores and products, and is key to producing its signature blends.
“This is an exciting new chapter for Philz as we expand and continue our mission to deliver a high-quality, personalized coffee experience to our loyal customers,” said Sadarangani. “Freeman Spogli’s deep experience in the consumer and restaurant sectors, along with their collaborative approach, makes them an ideal partner as we look to expand our footprint and continuously improve our offerings. We’re proud of the strong foundation we’ve built and look forward to accelerating our growth together.”
Freeman Spogli has been partnering with leading consumer brands since 1983. With over four decades of successful investment experience, the firm has helped support and scale businesses such as Boot Barn (NYSE: BOOT), El Pollo Loco (NASDAQ: LOCO), First Watch (NASDAQ: FWRG), Floor & Decor (NYSE: FND), and Popeyes Chicken. Freeman Spogli has been recognized on Inc.’s annual Founder-Friendly Investors list, honoring firms with a proven track record of supporting entrepreneurs and founders to accelerate growth in their businesses.
“Philz is a beloved brand with a passionate customer base, distinctive, handcrafted coffee offerings, and significant room for expansion,” said Brad Brutocao, partner at Freeman Spogli. “We are committed to preserving and building upon Philz’ rich heritage and will continue delivering the unique, authentic coffee experience that makes the brand so special. We believe the company is well-positioned for meaningful growth in the attractive and growing specialty coffee category, especially with Mahesh and the talented Philz team to help drive this new chapter of success.”
“From day one, Philz has been known for its distinct approach to coffee and the community it has cultivated around the brand. It was personally important to us to find a partner that fully appreciates and is firmly committed to our mission. With continued leadership from Mahesh and the customer-focused approach of Freeman Spogli, Philz is well positioned to continue scaling while staying true to what makes it special,” said Jacob Jaber.
Piper Sandler & Co. acted as exclusive financial advisor to Philz Coffee, and Kirkland & Ellis LLP served as its legal counsel. Morgan, Lewis & Bockius LLP acted as legal counsel to Freeman Spogli.
Additional information about the transaction is available here.
About Philz Coffee
Founded in 2003 in San Francisco, Philz Coffee specializes in customized blends made from sustainably sourced green coffee beans from around the world and skillfully roasted at its Oakland facility. Today, Philz Coffee is the largest independent third-wave coffee brand in the United States and has over 75 stores across California and Chicago. Philz Coffee has remained committed to its mission to Better Days for everyone, every day, through community and high-quality coffee handcrafted one cup at a time. Philz Coffee can be purchased at Philz locations, in select grocery stores and online and is also available in Philz K-Cup® pods.
To learn more about Philz Coffee and find the nearest location, visit philzcoffee.com.
About Freeman Spogli
Freeman Spogli is a private equity firm dedicated exclusively to investing in and partnering with management in consumer and distribution companies in the United States. Since its founding in 1983, Freeman Spogli has invested over $6 billion in 72 portfolio companies. Freeman Spogli has offices in Los Angeles and New York.
For additional information on Freeman Spogli, visit freemanspogli.com.
Contact:
Kristen Kauffman, SPM Communications
[email protected]
817-329-3257
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SOURCE Philz Coffee
