Freeman Spogli has acquired Philz Coffee in a deal reportedly valued at $145m, as the Los Angeles-based private equity firm adds the 77-unit U.S. coffee chain to its growing consumer portfolio.

The acquisition, expected to close on 6 August 2025, sees Philz continue under the leadership of CEO Mahesh Sadarangani, who joined the company in 2021. The transaction extends a decade-long track record of private equity involvement at Philz and positions the brand for further growth across the United States.

Freeman Spogli brings prior restaurant investment experience to the table, having backed notable brands such as El Pollo Loco, Popeyes, and First Watch. That expertise was a key factor in Philz’s decision to select the firm as its new majority owner.

“There are no plans to close stores, and in fact we have an exciting pipeline of new store openings planned over the next 24 months,” the company stated in an internal FAQ shared with employees.

Philz confirmed that all existing team members will retain their roles and continue to receive their existing pay, benefits, and promotion pathways. The company also plans to issue a thank-you bonus to its staff, though the amount was not disclosed.

Founded in San Francisco, Philz Coffee has built a loyal customer base through its handcrafted, pour-over coffee model and community-focused approach. The acquisition comes amid a broader wave of restaurant M&A activity in 2025, despite macroeconomic uncertainty and ongoing pressure across the foodservice industry.

Freeman Spogli has not publicly commented on the reported valuation.

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