UK-based Costa will use the acquisition to launch a new brand, Costa Express, a self-serve coffee bar. It will make its products available in new areas such as supermarkets, motorway service areas and hospitals, according to a statement released by the company.
Founded in 1999, Coffee Nation has 900 sites across the UK, which accounts for just under half of the 2,000 self-service coffee bars.
Andy Harrison, chief executive of Whitbread comments: ‘This acquisition provides an exciting launch pad to develop 3000 Costa Express bars across the UK, providing an additional growth lever for the Costa brand and making Costa available to more customers in more locations.’
Coffee Nation was acquired in 2008 in a Milestone Capital Partners-led secondary management buy-out for £24 million.
Whitbread also owns Premier Inn, Beefeater and Taybarns, and employs 40,000 worldwide.