Wagamama’s Parent Company Linked to Potential Costa Coffee Sale Talks
2831 Min Read
Apollo Global Management, the investment firm that owns Wagamama’s parent company, has expressed preliminary interest in acquiring Costa Coffee, Britain’s largest high street coffee chain, according to people familiar with the matter.
Apollo, which controls The Restaurant Group, is among a handful of potential suitors to have held early-stage talks with advisers to The Coca-Cola Co., Costa’s owner, the people said. The discussions remain at an initial stage, with no formal bids expected for several weeks.
The sources cautioned that Apollo has not yet decided whether it will pursue a formal offer for Costa. Another U.S. private equity firm, KKR, has also spoken with Coca-Cola’s adviser, Lazard, but is not expected to submit a binding bid, they added.
Coca-Cola’s decision to explore a potential sale of Costa comes less than seven years after the company acquired the coffee chain in an effort to expand beyond carbonated soft drinks.
Costa operates more than 2,000 outlets in the United Kingdom and over 3,000 globally, according to its most recent figures. It employs an estimated 35,000 people worldwide, though Coca-Cola has not provided updated numbers.
