US-based beverage giant Coca-Cola has taken action again to sell the British coffee chain Costa Coffee, which it acquired for 5.1 billion dollars in 2018. The company started to re-evaluate the sales process, which it stopped at the beginning of the year when it could not receive the offers it expected, with different buyer options.
FIRST SALES ATTEMPT FAILED
Coca-Cola has put its exit plan from British coffee chain Costa Coffee back on its agenda. The company is evaluating the possibility of reaching an agreement with potential buyers after its sales attempt failed in the first months of the year. It was stated that the offers presented in the negotiations with private equity investment companies at the beginning of the year did not meet Coca-Cola’s expectations and therefore the sales plan was suspended.
STRATEGIC BUYERS ARE ACTIVE AGAIN
It is stated that strategic investors as well as private equity funds are being evaluated in the new sales initiative. It was reported that at least one strategic buyer had previously examined the option of purchasing Costa Coffee, but the negotiations did not progress due to problems with the valuation of the company and its compatibility with the investor’s activities.
BOUGHT FOR 5.1 BILLION DOLLARS
Coca-Cola acquired Costa Coffee for 5.1 billion dollars in 2018. Aiming to go beyond the traditional carbonated beverage market and strengthen its presence in the coffee industry with this investment, the company took an important step in its strategy to diversify its product portfolio. After eight years, the future of the brand became uncertain once again, as Coca-Cola started looking for a buyer for Costa Coffee again. There is no definitive information yet regarding the price and when the sale may take place.
