Coca-Cola Seeks to Sell Costa Coffee
The beverage giant is looking to offload the British coffeehouse chain it acquired for $5.1 billion in 2018, after a previous sales process failed earlier this year
Coca-Cola is reportedly looking to sell Costa Coffee, a British coffeehouse chain it acquired in 2018 for $5.1 billion. This move comes after a previous sales process for the coffee chain failed earlier this year.
The company had scrapped its plans to sell Costa earlier this year due to low offers from private equity firms. At least one strategic acquirer had considered a deal for Costa but passed due to valuation and strategic issues.
Coca-Cola acquired Costa in 2018 as part of its effort to extend its push into healthier drinks. The acquisition was valued at $5.1 billion at the time.
## Why it matters The potential sale of Costa Coffee is significant for Coca-Cola, as it marks a reversal of the company's previous strategy to expand into the coffee market. The failure of the previous sales process and the decision to scrap plans to sell earlier this year suggest that the company may be having trouble finding a buyer willing to meet its valuation expectations.
Coca-Cola did not immediately respond to a request for comment on the potential sale of Costa Coffee. It is unclear what price the company might seek for the coffee chain if it were to put it back on the market.
The news of the potential sale comes as the company looks to re-evaluate its portfolio and focus on its core business. The sale of Costa Coffee could have significant implications for the company's strategy and direction in the coming years.
