Whitbread have agreed to sell the Costa coffee chain to Coca-Cola Company for a deal worth £3.9 billion.
The transaction is expected to complete in the first half of 2019.
The sale is expected to be worth £3.8 billion. In addition, a significant majority of the money raised through the sale is expected to be returned to Whitbread shareholders.
Alison Brittain, Whitbread chief executive, said: "I am delighted that we have agreed the sale of Costa to Coca-Cola for £3.9 billion. 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.”
James Quincey, Coca-Cola president and chief executive, said: "Costa gives Coca-Cola new capabilities and expertise in coffee, and our system can create opportunities to grow the Costa brand worldwide. Hot beverages are one of the few remaining segments of the total beverage landscape where Coca-Cola does not have a global brand. Costa gives us access to this market through a strong coffee platform.”
