Coca-Cola Contemplates Sale of Costa Coffee Chain
Coca-Cola, working with investment bank Lazard, is exploring options for British coffee chain Costa, which it acquired for over $5 billion in 2018. Potential buyers include private equity firms, although Coca-Cola may opt against selling. Costa Coffee operates over 4,000 outlets worldwide.
U.S. soft drink giant Coca-Cola has engaged investment bank Lazard to explore possibilities for its British coffee chain subsidiary, Costa. This could include an outright sale of the chain, acquired back in 2018 for a hefty $5 billion, according to a report by Sky News.
While Reuters has not independently confirmed the report, it notes Coca-Cola, Costa, and Lazard did not immediately respond to requests for comments on the matter. Sky News adds that Coca-Cola has initiated preliminary discussions with a select group of prospective buyers, mainly from private equity circles.
According to reports, interested parties are expected to submit indicative offers by early autumn. Costa Coffee, boasting more than 2,700 UK and Ireland locations as well as over 1,300 international outlets, was originally acquired to enhance Coca-Cola's healthier beverage offerings in competition with major players like Starbucks and Nestle.
(With inputs from agencies.)
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