[size=75:24ib88ms]novinite December 15, 2009

Costa Coffee Expands East

Whitbread PLC coffee-shop subsidiary Costa Ltd. Tuesday said it had agreed to buy coffeeheaven international PLC, a deal that provides a Central and Eastern European platform for Costa's international expansion, the Wall Street Journal reported.

The fast-growing chain will pay about USD 58 M, or 24 pence a share in cash, for each coffeeheaven share, a 25% premium to the closing price June 11.

Costa will gain coffeeheaven's 90 coffee shops in Central and Eastern Europe, comprising 62 shops in Poland, 14 in the Czech Republic and 14 across Bulgaria, Hungary and Latvia.

Costa, founded in 1971, and has more than 1,000 stores in the UK and more than 400 internationally. All its international stores are operated under franchise, in some cases via joint ventures with local partners.

It reported revenue in the fiscal first half ended Aug. 27 of GBP 155.4 M and operating profit of GBP 12.6 M.

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