TDR Capital is reported to be one of the interested parties in acquiring Costa Coffee from Coca-Cola (NYSE:KO) as the bidding process plays out. TDR Capital is a leading European private equity firm headquartered in London, England, with over €15 billion of assets under management.
Costa Coffee has also attracted interest from Apollo Global Management (APO) and Chinese investment group Citic, according to the Financial Times. The Atlanta-based beverage giant is said to be working with investment bank Lazard to explore options following a trend of underperforming sales at Costa and spiking commodity coffee prices.
Sources indicate that Coca-Cola (NYSE:KO) may keep part of its stake in Costa Coffee as part of any deal.
Costa Coffee is the UK’s largest and the world’s second-largest coffeehouse chain behind Starbucks (SBUX). The chain is recognized for its premium coffee, comfortable in-store experience, and diverse product offerings, including handcrafted drinks, pastries, and ready-to-drink retail products. Founded in London in 1971 by the Costa brothers, it started as a coffee roastery and evolved into a global brand with over 4,000 stores across 31 countries and a wider reach through Costa Express vending machines and retail channels.
Coca-Cola Company (KO) acquired the Costa Coffee chain in 2018 for $4.9 billion.