Costa has nearly 4,000 stores across 32 countries. It will give Coca-Cola (KO) "a strong coffee platform across parts of Europe, Asia Pacific, the Middle East and Africa, with the opportunity for additional expansion," Coca-Cola said in a statement.
Whitbread, which acquired Costa in 1995, said it will use proceeds from the sale of the coffee business to expand its other big brand, Premier Inn hotels.
The deal still needs to get approval from shareholders and regulators, and is expected to be completed in the first half of 2019, the companies said.
This news will be updated.
