‘A huge premium’: Here’s how analysts are reacting to Coca-Cola’s deal to buy Costa Coffee

Citi: A $4.2 billion boost to Whitbread

Monique Pollard and her team at Citi believe the deal will give Costa Coffee’s parent company, Whitbread, a £3.2 billion ($4.15 billion) boost on its balance sheet.

“The transaction is a cash and debt-free deal, with Whitbread’s financial debt and pension fund staying with Premier Inn. We estimate c.£3.2b of cash proceeds available post transaction costs, pay-down of Whitbread’s pension deficit and cash to be spent on management’s previously announced German hotel acquisitions.”

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