Speciality coffee brand Philz Coffee has reached a definitive agreement to be acquired by Freeman Spogli, a strategic growth investor.

The financial terms of the acquisition have not been disclosed, but the deal is anticipated to close on 6 August 2025.

Philz Coffee will continue to operate under the leadership of CEO Mahesh Sadarangani, who has been at the helm since 2021, along with the existing leadership team.

Philz Coffee was founded in 2003 in San Francisco by Phil Jaber and his son Jacob.

It operates 77 cafés across California and Chicago, complemented by its wholesale and online business segments.

The company also has a roasting facility in Oakland, California.

Jacob Jaber stated: “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.”

Freeman Spogli has a long history of partnering with consumer brands since its inception in 1983, having previously invested in Boot Barn, El Pollo Loco, First Watch, Floor & Decor and Popeyes Chicken.

Freeman Spogli partner Brad Brutocao stated: “Philz is a beloved brand with a passionate customer base, distinctive, handcrafted coffee offerings and significant room for expansion.

“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.”