Philz Coffee, the specialty coffee brand founded in San Francisco, has reached a definitive agreement to be acquired by Freeman Spogli, a strategic growth investor focused on the consumer and multi-unit industries. The acquisition is expected to close on August 6, 2025.
Mahesh Sadarangani will continue to lead Philz as CEO, along with the current leadership team. The company, known for its personalized, made-to-order drinks and cafe culture, was founded in 2003 by Phil and Jacob Jaber.
From a single cafe in San Francisco’s Mission District, Philz has grown to 77 locations across California and Chicago. The company roasts its coffee in Oakland, which supplies all its stores and is essential to its signature blends.
Freeman Spogli, with over 40 years of investment experience, has a history of supporting and scaling consumer brands like Boot Barn, El Pollo Loco, and First Watch. The specific terms of the Philz transaction were not disclosed.
Advisors/counsels: Piper Sandler acted as exclusive financial advisor to Philz Coffee, and Kirkland & Ellis served as its legal counsel. And Morgan, Lewis & Bockius acted as legal counsel to Freeman Spogli.
KEY QUOTES:
“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. 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.”
Mahesh Sadarangani
“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.”
Brad Brutocao, partner at Freeman Spogli
“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.”
Jacob Jaber
