Massimo Zanetti Beverage Group (MZBG) has agreed to purchase a 100% stake in Nutricafés, a key coffee company in Portugal, for €74.5m.

The board of directors of MZBG has given approval to the acquisition of the coffee company from private equity funds managed by MCH PE and Explorer Investments.

The purchase will be funded through new credit lines provided by the banking system.

"With Nutricafés we will become the third largest operator in Portugal."

This deal will boost MZBG's presence in the Portugese market, where it operates through a subsidiary, Segafredo Zanetti Portugal, and has a brand, Segafredo Zanetti.

It has a share of 14% in the Portugese market.

MZBG claimed that with this acquisition, it expects to achieve synergies in Portugal and Spain, where the new combined organisation will serve the markets in a more effective manner.

The acquisition is expected to close by September this year.

Nutricafés operates a production plant in Portugal, which will serve products to both the Portuguese and Spanish markets. It has two coffee brands; Nicola Cafés and Chave D’Ouro.

Massimo Zanetti Beverage Group president and CEO Massimo Zanetti said: “I am very proud of the acquisition of these two historical brands, several hundred years old.

“Nicola Cafés is one of the oldest and most prestigious Portuguese coffee brand dating back to 1779. Both brands have a strong presence and awareness among consumers and with Nutricafés we will become the third largest operator in Portugal.

“Thanks to this acquisition, we strengthen our presence not only in Portugal but in the whole Iberian peninsula as it allows us to enter as a main player into the Spanish market."