Whitbread to target Europe coffee chain

Dec 12 2009 by Iain Laing, The Journal

LEISURE group Whitbread has confirmed a potential expansion to its coffee empire as it revealed takeover talks with central European chain Coffeeheaven International.

Whitbread, which owns the Costa coffee business, said it was in “advanced discussions” over a possible cash offer. The firm said its bid would be worth 24p per Coffeeheaven share – valuing the company at £32m.

It added 100 new Costa shops in the six months to August 27 this year - bringing the total to nearly 1,000 stores in the UK and more than 400 overseas.

The division was said to have produced an “outstanding“ performance in that period, with operating profits up 70% to £12.6m, on revenues up 21% to £155.4m.

In the firm’s most recent results for the six months to September 30, it said it had a 23% market share in Poland and the country looked to be an “economic ‘out-performer’ in Europe.

Pre-tax profits before incentive payments were up 181% to £237,880, on group turnover up 16%.