Bosses snap up Ipswich-based Paddy and Scott's coffee brand

Ipswich-based coffee business Paddy & Scott's changed hands on January 12 for an undisclosed sum.

Scott Russell - the remaining co-founder and sole owner - sold it to a team led by the firm's managers.

"It really works for all parties. I have grown the business to where I want it. It's my name over the front door and I want to make sure the business is in the right hands - and it is," he said.

He previously received a higher offer from a public limited company (plc) - but expressed delight that the business would stay in local hands after its two managers secured "significant" funding.

Chief executive Jonathan Reed and operations director Zoe Hill are equally delighted at taking on the celebrated brand with the support of three backers - two local business people from Suffolk and one from elsewhere.

"About 18 months ago we were approached by a plc business that wanted to buy Paddy & Scott's," explained Mr Reed.

"We felt - me and Zoe - that we had worked too hard and too long to become part of a big, global plc and therefore we would try and find another option for Scott."

They put together a management buyout offer which was successful - and are now steering the company and its 35-strong workforce - which is based in Ipswich and in Hadleigh where it also runs a coffee shop. All jobs were retained under the deal.

"We managed to raise some funds from some contacts within our network," said Mr Reed, who has been with the company for six years.

The company remains "proudly Suffolk and has always been here", he said. "This move is one of absolute protection in order to keep doing what we are doing," he added.

In 2017 the firm launched the Muchomba Farm and Rugia School project in Kenya after deciding that it wanted to cut out the middleman and develop a direct relationship with coffee farmers.

Ms Hill started 10 years ago in a customer service role with the company when it was based at Earl Soham, near Framlingham, and rose through the ranks.

The bulk of the business is its wholesale arm which is geared towards supplying its coffee products to a range of hospitality and leisure businesses. There are also three further Paddy & Scott's cafés  - in Lichfield, Colchester and Durham - operated under licence and an e-commerce business.

The company - which enjoyed 28% growth last year - was started on a shoestring in 2007 by Scott Russell and by Paddy Bishop - who exited the business in 2016.

It was 2022 recipient of this paper's Business of the Year award, and in 2011 Scott Russell was named Director of the Year.

Its coffee bean partnership in Kenya will continue - as will a product called Lunch Box Coffee whereby for every bag of coffee sold a school meal is delivered in coffee-growing regions of the world.

"We have the farm in Kenya which remains a lovely part of our world. There are three schools that neighbour the farm and there's lots of work we want to do there," said Mr Reed.

The company would also continue its sustainability drive, he added.

"The business will greatly benefit from new energy and we are thrilled to give Scott the opportunity to celebrated his 17 years and help many other UK businesses as a successful coach, investor and mentor," he said.

Ms Hill said it was the "perfect time" to embark on the next chapter of the firm's journey.

"It's a moment of pride to have joined the company 10 years ago and now to call myself proud custodian and owner," she said.

"Over the years, we have built a team of incredible people and look forward to empowering more coffee farms, providing more school meals and ambition to children in coffee-growing regions."

Mr Russell said he was delighted the company would continue to be independently owned after multiple approaches to acquire the business.

"I'm extremely proud of what we have achieved at Paddy & Scott's and after 17 years it's a proud moment to hand the keys over to the management team," he said.

"Paddy & Scott's is in great hands and I wish them well for the future.

"I know that they have big plans and I'm excited to watch Jon and Zoe take the business forward in new directions."

Paddy & Scott's is the fifth business to be started by Mr Russell, 52, who lives in Badingham, near Framlingham.

"This has been my little baby for 17 years but this won't be my last company," he said. "I think they are a brave bunch and they are going to do good stuff for the business."

He now wants to pursue other opportunities and work with local charities, he said.

"I think it's a brilliant time to be an entrepreneur - I genuinely do," he said.

"I have learnt an awful lot at Paddy & Scott's. I have learnt to think good is good for business," he added. "When you are a good company you attract good people."

His wish was for the company to stay in private hands and stay in the county, he said. "These guys weren't paying as much but they are not far off and I would prefer to have the business in the hands of the people that got it there."