Asda owner TDR Capital mulls bid for Costa Coffee
The FT has learnt that management presentations have recently been held with interested parties
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Asda owner TDR Capital is among the investment groups considering an acquisition of Costa Coffee as owner Coca-Cola explores a potential sale, according to the Financial Times.
Coca-Cola has hired Lazard to advise on options for the UK’s largest coffee chain, which it bought from Whitbread in 2019 for £3.9bn.
Costa has since struggled with rising costs and stronger competition, prompting Coca-Cola to consider reducing its stake.
People familiar with the process told the FT that TDR is one of several potential bidders, alongside Apollo Global Management and Chinese investment group Citic.
The outlet has learnt that management presentations have recently been held with interested parties. Coca-Cola may seek to retain part of its holding under any deal.
It also reported that TDR, which acquired Asda from Walmart in 2021 in a £7bn deal, previously considered buying Costa through its EG Group forecourt business before Whitbread sold it to Coca-Cola.
The private equity group also owns David Lloyd gyms and Stonegate, the UK’s largest pub operator.
The news comes after Sky News reported that the Investment group Apollo Global Management reportedly held early-stage talks with advisers to Coca-Cola as it explores a sale of Costa.
The private equity vehicle, which owns Wagamama’s parent company, The Restaurant Group, is said to be part of a small number of suitors that have held initial talks with advisers.
Costa reported an annual loss of £13.8m in 2023 on sales of £1.2bn, according to accounts filed at Companies House, though Coca-Cola took an £85m dividend.
TDR Capital has been contacted for comment.
