Black Sheep Coffee has acquired the eight-strong coffee shop estate of Taylor St Baristas, CEO Gabriel Shohet has told MCA.

The takeover gives Black Sheep a presence in Mayfair, Bank, Chancery Lane and St Paul’s.

The deal does not include Taylor St’s central production unit in South Quays.

All staff members have transferred via TUPE and all leases have been transferred to Black Sheep for each individual site.

Shohet said: “We are pleased with the acquisition and are excited to welcome all Taylor Street staff as part of the Black Sheep family that everyday is growing bigger and stronger. The Tolley siblings have built an incredible company over the years and we look forward to working closely together through this exciting time!”

It comes after Black Sheep raised £13m in new private investment to double its estate through a mixture of M&A and organic site openings.

The investment round valued the coffee retailer at more than £100m, and brought its total raised to £25m.

Investors include Tellef Thorleifsson, an early investor in Spotify and founder of venture capital fund Northzone Ventures, and senior Coca-Cola executive Bill Schultz.

The new additions bring the estate to more than 40 coffee shops.

The speciality coffee shop operator is targeting further London, regional and international stores as it accelerates its expansion strategy.

Meanwhile Taylor St Baristas is divesting its stores as it pivots from coffee shop operator to “full stack coffee business”.

Taylor St revealed earlier this year in an investment deck it had agreed to the sale of its eight existing coffee shops.

The speciality coffee group launched an equity fundraise on Crowdcube targeting £750,000 – however MCA understands the campaign was pulled yesterday after only reaching around a quarter of its target.

Taylor St is instead turning its attention to a partnership with Sodexo, which will see it open more than 100 branded Taylor St cafes, and a further 300 cafes under proprietary brand Chapter & Verse.