City Capital Ventures acquired a majority stake in Diedrich Roasters, the Idaho-based manufacturer of batch coffee roasting equipment. This was City Capital Ventures’ second investment this year. The transaction was completed with Lighthouse Ventures. KeyBank provided a senior term loan and revolving credit facility.

The transaction enables founders Stephan and Becky Diedrich to retire after 35 years of building Diedrich into an iconic brand in the global coffee industry. The company will continue to operate independently under the leadership of current CEO Michael Paquin and his team. The financial terms of the transaction were not disclosed.

“I am very proud of the role Diedrich has played in the development of the specialty coffee industry into what we know it as today,” commented Diedrich. “There is truly no other roaster that roasts like a Diedrich. I am looking forward to entering the next phase of my life and seeing Diedrich’s continued success.”

“We are thrilled to partner with Mike (Paquin) and the entire Diedrich team to carry on the rich legacy started by Steve and Becky Diedrich four decades ago,” said Allen Tibshrany, managing director of Chicago-based City Capital Ventures. “We continue to be amazed with the craftsmanship of Diedrich’s roasters and the power of the Diedrich brand, both domestically and abroad, and look forward to helping this proud Idaho company attain new heights in the years ahead.”

Seattle-based Lighthouse Ventures, an independent management & investment firm based in Seattle, collaborated with City Capital to complete the transaction.