Nestlé is paying Starbucks $7.15 billion for the right to sell the chain’s coffee beans and drinks in groceries and other outlets around the world, a business that Starbucks says generated annual sales of $2 billion. The Switzerland-based company also will pay royalties on all future sales. Nestlé says the transaction provides the company with a strong platform for continued growth in North America with leadership positions in the premium roast and ground and portioned coffee businesses. Starbucks CEO Kevin Johnson said the deal will also bring his Seattle-based company’s products “to the homes of millions more around the world through the reach and reputation of Nestlé.” The agreement is subject to customary regulatory approval and is expected to close by the end of 2018, the two companies said in a statement.

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