Apollo Global Management has entered early discussions with Coca-Cola’s advisers about acquiring Costa Coffee, though no formal offers are expected for several weeks and Apollo may still walk away. Coca-Cola, which bought Costa in 2018 for more than $5 billion to strengthen its position in the global coffee market, is exploring divestment options as private equity interest emerges.
KKR has also engaged with Coca-Cola’s adviser Lazard but is not expected to submit a bid, according to reports. Costa Coffee currently operates more than 4,000 stores across 50+ countries, including over 2,700 in the UK and Ireland. Despite global expansion, the chain has struggled with rising costs in commodities, labor, and real estate, as well as intensified competition. It posted a pre-tax loss of £9.6 million in 2023, compared with a £245.9 million profit the year before.
Source: Yahoo! Finance
