Bain Capital Submits Bid to Acquire Costa Coffee from Coca-Cola
Dubai – Qahwa World
US private equity firm Bain Capital has made an initial bid to acquire Costa Coffee from beverage giant The Coca-Cola Company, according to sources familiar with the matter.
The bid was submitted through Bain Capital’s Special Situations unit, which has invested more than $17bn since its launch in 2018 and currently manages over $21.6bn in assets. The investment group already counts boutique bakery-café chain Gail’s and restaurant brand PizzaExpress among its portfolio.
The development follows less than two weeks after Apollo Global Management, once considered the frontrunner, withdrew its interest in the UK-based coffee chain. Reports indicate that Coca-Cola has received fewer offers than expected for Costa, which operates more than 4,100 outlets worldwide. London-based TDR Capital, which has stakes in UK supermarket Asda and QSR brand Popeyes, also submitted a preliminary bid last month.
Coca-Cola has been exploring a sale of Costa since August 2025, nearly seven years after acquiring the company from Whitbread in January 2019 for $4.9bn. Speaking after Coca-Cola’s second-quarter earnings release earlier this year, CEO James Quincey admitted that the group’s investment in Costa Coffee “is not where we wanted it to be.”
A sale would likely see Coca-Cola incur losses of several billion dollars compared to its original purchase price. However, the company is expected to retain ownership of Costa’s ready-to-drink (RTD) beverage portfolio.
Founded in 1971, Costa Coffee is the UK’s largest coffee chain, with its home market accounting for around two-thirds of its global footprint. The brand reported 9% year-on-year sales growth in the 12 months ending 31 December 2023, reaching £1.2bn ($1.6bn), with the UK contributing 96% of total sales.
