Coca-Cola seeks to unwind $5 billion Costa Coffee acquisition

Verifying
  • Coca-Cola is seeking to unwind its acquisition of Costa Coffee.
  • Coca-Cola acquired Costa in 2018 for $5.1 billion.
  • Private-equity offers fell below expectations, halting an earlier sales process.

Coca-Cola is seeking to unwind its acquisition of British coffeehouse chain Costa Coffee after a sales process failed earlier this year, Semafor reported on Thursday, citing people familiar with the matter. Coca-Cola acquired Costa in 2018 for $5.1 billion as part of an effort to expand into healthier drinks. The company halted plans to sell the chain after private-equity offers fell below expectations, according to a Financial Times report in January. At least one strategic acquirer considered a transaction before deciding against it because of valuation and strategic issues. It could not be determined what price Coca-Cola might seek if Costa returns to the market. Coca-Cola did not immediately respond to a request for comment, and Reuters could not independently verify the report.

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