Whitbread to sell Costa Coffee chain to Coca-Cola for £3.9billion


Whitbread to sell Costa Coffee chain to Coca-Cola for £3.9billion

  • Firm earlier this year planned to demerge Costa and list it as a separate entity 
  • It said the sale of the coffee chain is now ‘in the best interests of shareholders’
  • Proceeds of the sale will be used to pay down debt and boost the pension fund

Alexander Robertson For Mailonline

Whitbread is to sell Costa Coffee to Coca-Cola for £3.9 billion. 

The firm, which earlier this year planned to demerge Costa and list it as a separate entity, said that a sale of the business is now ‘in the best interests of shareholders’.

Proceeds of the sale will be used to pay down debt and boost the pension fund.

Whitbread is to sell Costa Coffee to Coca-Cola for £3.9 billion, the company announced today

Whitbread is to sell Costa Coffee to Coca-Cola for £3.9 billion, the company announced today

Whitbread is to sell Costa Coffee to Coca-Cola for £3.9 billion, the company announced today

A significant majority of net cash proceeds intended to be returned to shareholders, Whitbread added.

Whitbread will now focus on its Premier Inn hotel chain.

Chief executive Alison Brittain said: ‘This transaction is great news for shareholders as it recognises the strategic value we have developed in the Costa brand and its international growth potential and accelerates the realisation of value for shareholders in cash.

‘This combination will ensure new product development, continued growth in the UK and more rapid expansion overseas.’

Proceeds of the sale will be used to pay down debt and boost the pension fund, Whitbread said

Proceeds of the sale will be used to pay down debt and boost the pension fund, Whitbread said

Proceeds of the sale will be used to pay down debt and boost the pension fund, Whitbread said

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