First Islamic invests in coffee

Bahraini investment bank, First Islamic, looks forward to an eventual stock market flotation of its newest North American asset, Caribou Coffee Company.

  • E-Mail
By  David Ingham Published  December 11, 2000

First Islamic Investment Bank has taken an undisclosed stake in USA coffee specialist, Caribou Coffee Company. The $80 million investment gives First Islamic a toehold in what is a rapidly growing market — coffeehouses have spread like wildfire across the USA and Europe in recent years.

First Islamic says it aims to grow Caribou into the number two player in the US market behind runaway leader, Starbucks. Caribou is well placed to grow, according to the bank, following a management shakeup and streamlining of operations in recent years.

"Caribou's goal is to become a public company," said Atif A Abdulmalik, chief executive officer, First Islamic Investment Bank. "We believe that if the company achieves its growth plan, it will be well positioned to achieve an initial public offering (IPO) in two to three years."

First Islamic has invested around $450 million in the USA since its creation in 1997. It has just completed its first divestiture of an acquired asset, the $248 million sale of Computer Generation Incorporated to UK company, Intec Telecom Systems.

Add a Comment

Your display name This field is mandatory

Your e-mail address This field is mandatory (Your e-mail address won't be published)

Security code