Coffee Nation provides premium quality gourmet coffee via self-service outlets in 900 locations throughout the country, including Tesco, Welcome Break, and Moto, and has an annual turnover in excess of £20 million.

In March 2008, Milestone Capital Partners ('Milestone') led the £24 million secondary management buyout of Coffee Nation, backing the existing management team. Investec provided a preferred equity investment of £5.25 million in support of their bid.

James Stirling from Investec commented: "Since we supported the MBO in 2008, against the backdrop of an uncertain economic environment, Coffee Nation has experienced significant growth in earnings and consolidated its position as the leader in its market segment, confirming the resilience of its business model.

"We are delighted to have supported Milestone and a strong management team in this transaction. The use of a preferred equity strip in the structure enabled Milestone to significantly improve its cash multiple. We are committed to continue working with mid-market private equity firms to enable them to maximise their returns."