Nestle Enters Agreement With Starbucks for Consumer, Foodservice Products
May 07 2018 - 1:47AM
Dow Jones News
By Anthony Shevlin
Nestle SA (NESN.EB) said Monday that it has entered an agreement
with Starbucks Corp. (SBUX) for the coffee chain's consumer and
foodservice products.
The Swiss company said Starbucks will receive an upfront cash
payment of $7.15 billion for the business, with annual sales of $2
billion, as part of a global perpetual license. The transaction
doesn't include any fixed assets and excludes Starbucks'
ready-to-drink products.
Nestle said the deal doesn't include the sales of any products
within Starbucks coffee shops.
Approximately 500 Starbucks employees will join Nestle and
operations will be located in Seattle, the company said.
Mark Schneider, chief executive of Nestle, said: "This
transaction is a significant step for our coffee business, Nestle's
largest high-growth category."
Write to Anthony Shevlin at anthony.shevlin@dowjones.com
(END) Dow Jones Newswires
May 07, 2018 01:32 ET (05:32 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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