Coca-Cola held last-ditch talks with private equity firm TDR Capital over the weekend in a bid to to salvage the proposed deal for the sale of Costa Coffee after negotiations stalled over price, according to a report by the Financial Times.
TDR, co-owner of EG Group, was selected as Coca-Cola’s preferred bidder earlier this week following a board meeting in New York, sources say.
The deal under discussion would see Coca-Cola retain a minority stake in Costa, with the size of the holding potentially adjusted to bridge differences on valuation. Coca-Cola is reportedly seeking around £2bn, down from the £3.9bn it paid to acquire the business from Whitbread in 2018.
Costa has struggled with rising costs and increased competition from independents and mass-market operators such as Greggs, posting a £13.8m loss on £1.2bn in revenue in 2023. TDR is aiming to acquire Costa’s UK and international operations, excluding China.
Other private equity bidders, including Bain Capital’s special situations unit and Centurium Capital, have also been involved in the process, while Apollo and KKR have exited. Coca-Cola is expected to decide next week whether to continue the sale process.
