As part of this transaction, Starbucks will receive an up-front cash payment of USD 7.15 billion for a business which generated annual sales of USD 2 billion. The transaction does not include the transfer of any fixed assets, which facilitates a smooth and efficient integration. Nestlé expects this business to contribute positively to its earnings per share and organic growth targets as from 2019. Nestlé’s ongoing share-buyback program will remain unchanged.
Approximately 500 Starbucks employees will join the Nestlé family to drive performance of the existing business and global expansion. Operations will continue to be located in Seattle.
The agreement is subject to customary regulatory approval and is expected to close by the end of 2018. The agreement excludes Ready-to-Drink products and all sales of any products within Starbucks coffee shops.
Nestlé will host an investor conference call led by CEO Mark Schneider and CFO François-Xavier Roger on Monday, 7 May at 7:30 p.m. CEST (1:30 p.m. EST) to provide further details.
Source: https://www.nestle.com/media/pressreleases/allpressreleases/nestle-press-release-may-2018
Submitted May 07, 2018 at 01:14AM by jsonee https://ift.tt/2IjHVuY
