It’s been revealed that Coca-Cola will be buying Costa Coffee for £3.9 billion from its current owner Whitbread.
Whitbread bought Costa back in 1995 for just £19m. Since then it’s grown the company to the largest UK coffee chain, boasting over 3,500 locations and revenues of over £1.1 billion (2016).
After the sale, Whitbread will use the money to focus on growing its Premier Inn business in both the UK and Germany. It will also return some cash to shareholders, boost its pension fund, and pay down existing debt. Its shares have already rising 17% since the stock market opened this morning.