Coffee roaster Java Republic has been taken over by Spanish coffee company Cafento, with founder David McKernan selling out his stake in the firm.

Consideraton for the transaction was not disclosed. Cafento said McKernan (pictured) will continue working with the company in a non-executive capacity as a brand ambassador.

Managing director Grace O’Shaughnessy is staying with the business.  “This is an exciting milestone for Java Republic as a new partnership will help us identify new opportunities to show more coffee lovers about our expertise and conscientiousness," she said. “The new partnership will help Java identify new opportunities to show more coffee lovers about our expertise and conscientiousness."

Cafento is a third-generation Spanish family business and one of Spain’s largest coffee companies. Emma Brett, director of Cafento International, will join the team in Dublin. 

“It was clear from our first meeting how passionate the Java Republic team are about coffee," said Brett. "An incredible business has been built in Ireland and I look forward to working with everyone here as we seek opportunities to bring the Java Republic brand to new markets.”

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• Who benefits from Java Republic sale? Download list of shareholders

After school David McKernan (50) jumped straight into working for Bewley’s, bypassing college because he was impatient to earn a living. Having caught the coffee bug and learned the fundamentals, he established Java Republic in August 1998, just as he turned 30, and commenced trading a year later from a base on the Naas Road.

McKernan’s startup was a small roastery where he could invent his own coffee bean blends.  Java Republic quickly established a reputation for good coffee and the company prospered – gross profit was €3.8m in 2008, a decade after the business started. That was when McKernan decided to scale up, moving from the Naas Road leasehold to a freehold facility in Ballycoolin, D15.

Back when he was preparing to launch his first roastery, the entrepreneur was so broke that he recalls his car running out of fuel three times in one week. At Ballycoolin, the project build in 2008 went over-budget, and net debt tripled in one year to €2.7m. The saving grace was that even through the recession people kept drinking coffee, and now consumption is higher than ever.

Java Republic Ltd booked a net profit of €636,000 in 2017 and net worth at year-end was €2.4m. Total liabilities amounted to €4,950,000, and the company had balance sheet cash of €154,000 in December 2017.

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