Coca Cola acquires Costa Flashcards
Who did Morgan Stanley advise?
Whitbread PLC (Costa)
What was the transaction value? What was the consideration?
$5b
Cash
What does Costa do?
Operates coffee shops in the UK and internationally. It also has a retail presence and coffee vending.
Who else bid for Costa?
Bain, CVC, TPG
Why did Coca Cola do this?
More of a diversification play rather than an acquisition to take advantage of synergies. Costa is a clear coffee leader. It wants to push into China, it most likely wants to push into retail and further coffee vending.
This is part of the “coffee thesis”, which is a trend of consumers moving into healthier beverages and consumer companies supporting that trend by moving into the coffee sector. This joins other transactions such as Keurig Dr. Pepper, Nestle/Sbux, JAB Pret a Manger, and more
What was the EBITDA multiple?
What are the comp median/average?
16.4x
