The heads of both firms hailed the deal as “complementary to their respective brands and customers across the UK and Ireland”.
Tchibo is reportedly aiming to further grow its coffee service business in the UK, while Matthew Algie will benefit from Tchibo’s presence in Europe.
Nick Snow, managing director of Tchibo Coffee Service, said the German multinational was attracted to Glasgow-based Matthew Algie for a number of reasons, including its dedication to ethical trading, its training operations and technical customer support.
He added that there is now an opportunity to grow Matthew Algie’s Espresso Warehouse concept, which acts as a one-stop-shop for coffee bars, providing them with a range of food and drink products and equipment, across Europe.
The deal with Tchibo will see the Matthew Algie brand retained in the UK, and the company will continue to operate with its existing management team.
Snow said Tchibo is “very keen to maintain Matthew Algie’s independence while providing it with the opportunity to drive innovation in the UK coffee service market”.
Eric Hagman of Matthew Algie said the deal gives the firm a “major platform” for future growth.
He added: “Tchibo is the right partner to help us build on the achievements of the last few years and we are very excited about the future potential of the business.”