SEATTLE -- Nestle has entered into an agreement to bring Starbucks products to millions of homes worldwide.
The Swiss-based company announced Monday that Starbucks will receive an up-front cash payment of $7.15 billion for a business which generated annual sales of $2 billion. Approximately 500 Starbucks employees will join Nestle, and operations will continue to be located in Seattle.
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The agreement excludes ready-to-drink products, and all sales of any products within Starbucks coffee shops.
In a news release, Starbucks CEO Kevin Johnson says the "historic deal is part of our ongoing efforts to focus and evolve our business to meet the changing consumer needs."
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Nestle CEO Mark Schneider says it's a great day for coffee lovers.
The deal is subject to regulatory approval and is expected to close by the end of the year.
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