Nestlé closes perpetual global license deal with Starbucks
August 28, 2018
7.15 Billion USD
On August 28, 2018, Nestlé S.A. announced that it has closed the transaction with Starbucks Corporation whereby Nestlé has acquired perpetual rights to market Starbucks' consumer packaged goods and foodservice products globally outside of its coffee shops. Nestlé has acquired the rights to market, sell, and distribute Starbucks®, Seattle’s Best Coffee®, Teavana™, Starbucks VIA® and Torrefazione Italia® packaged coffee and tea in all global at-home and away-from-home channels, in exchange for US$7.15 billion in closing consideration to Starbucks.
This global alliance combines the international reach of Nestlé with the strength and consumer following of the Starbucks brand. The alliance is aimed at providing Nestlé with a strong platform for continued growth in North America to better serve the evolving needs of their customers. Approximately 500 Starbucks employees in the United States and Europe will join the Nestlé team.
Nestlé is the world's largest food and beverage company based in Switzerland.
Starbucks, headquartered in Seattle, is a leading coffee company and coffeehouse chain.
McCarthy Tétrault LLP advised Nestlé on the Canadian aspects of the transaction with a team led by Lara Nathans that included Scott Bergen and Claire Sung (M&A), Vincent Yip (Intellectual Property), Dan Glover (Privacy), Lisa Melanson (Regulatory), Kate McNeill-Keller (Labour and Employment), Kelleher Lynch (Pension and Benefits), Oliver Borgers, Michele Siu and Jonathan Bitran (Competition), Martha Harrison (International Trade and Anti-corruption), and Christian Meighen and Marie-Soleil Landry (Tax).