Matthew Algie will continue to operate as a standalone entity, but it is hoped the deal will allow for further expansion.
Chairman Eric Hagman, said: “We believe this deal gives the company a major platform for further growth and to expand Matthew Algie’s operations across the UK with an eye on European markets also.
“Tchibo is the right partner to help us build on the achievements of the last few years and we are very excited about the future potential of the business.”
Matthew Algie’s senior management team, including CEO Gary Nicol, sales and marketing director Brian O’Hagan, operations director Peter McGadey and technical director Ewan Reid, will continue to lead the expanding operation.
Tchibo Group generated revenues of €3.4 billion in 2015 and its coffee service provides tailored out of home solutions.