Whitbread in the UK has confirmed that it plans to demerge Costa, its coffee business, to provide shareholders with an investment in two distinct, focused and market-leading businesses.
In a statement, Whitbread said that after they separate, both businesses will be in a strong position to create value by capitalising on significant structural growth opportunities in the UK and internationally.
The demerger of Costa will be pursued as fast as practical and appropriate to optimise value for shareholders and is expected to be completed within 24 months.
Whitbread has developed Costa into the UK’s leading out-of-home coffee chain and has laid the foundations for international growth in China and elsewhere.