Gerry Ford, founder, chair and CEO of the Caffè Nero coffee chain, is to take the company private in a £225m management buyout.

Ford believes that as a privately owned company, Caffè Nero will have “ greater flexibility to pursue its expansion strategy” and add to its network of 290 stores.

The Times reported that it was shareholders’ reluctance to back a foreign expansion that forced Ford into taking the company private.

The 270p per share offer by Rome Bidco – a new company formed by Ford for the purposes of the offer – represents a 36.5 per cent premium to the average closing price of 197.7p for the three months to 17 August 2006, when the company announced that it was in talks.

John Barnes, an independent director of Caffè Nero, said: “The independent directors have duly considered the offer and believe that it represents fair value for the company’s shareholders and fairly reflects the future prospects for the business. As such, they are unanimously recommending that shareholders accept.”

Citigroup and PricewaterhouseCoopers are advising Ford and Caffè Nero respectively. Details: www.caffenero.com