Whitbread-owned Costa acquires Coffee Nation
Costa has acquired Coffee Nation for £59.5 million, Whitbread has announced.
Costa has announced the acquisition of Coffee Nation following successful sales negotiations between the two parties.
The move is part of the former's plan to launch a new brand, Costa Express, which is targeting the self-service sector.
Costa is keen to access new types of location and take advantage of the growth that this section of the market is witnessing.
The company plans to establish 3,000 bars across the UK over the next five years in addition to the continued expansion of its store network.
Sales negotiations between the two organisations saw a fee of £59.5 million agreed for the entire share capital.
Andy Harrison, chief executive of Whitbread, said that the move will allow Costa to meet the public demand for coffee to go.
"Customers increasingly want great tasting coffee on the go, which makes the self-serve coffee market very attractive," he added.
As well as Costa, Whitbread owns hospitality brands including Premier Inn, Beefeater and Taybarns.