Coca-Cola is snapping up UK’s biggest coffee brand Costa Coffee in a £3.9bn deal from owner Whitbread, it has been announced today.
Whitbread chief executive Alison Brittain said the company’s shareholders unanimously voted for the deal. This comes as the company previously revealed it wants to focus on its Premier Inn business in the UK and Germany.
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.
“The announcement today represents a substantial premium to the value that would have been created through the demerger of the business and we expect to return a significant majority of net proceeds to shareholders.
“Whitbread will also reduce debt and make a contribution to its pension fund, which will provide additional headroom for the expansion of Premier Inn.”