Bain Capital’s Special Situations unit, the investor behind Gail’s and PizzaExpress, has submitted a first-round bid for Costa Coffee, according to a report in the Financial Times.

Coca-Cola recently announced that it is reportedly exploring the sale of Costa Coffee, which it acquired in 2018 for over $5 billion.

The company is working with investment bank Lazard on the process. FT said that other interested parties reportedly include TDR Capital, owner of Asda, while Apollo is understood to have opted out.

Founded in London more than five decades ago, Costa is the UK’s biggest coffee chain, with over 2,700 outlets in the UK and Ireland. Despite international expansion and a ready-to-drink product line, the brand has faced mounting costs and weaker consumer spending in recent years.

Last month, CEO James Quincey announced: “We are reflecting on what we’ve learned and exploring new avenues to expand within the coffee category while maintaining the Costa brand's integrity".

Bain Capital’s Special Situations unit, created in 2018 to manage complex assets, now oversees $21.6 billion in funds. It became majority owner of Gail’s parent company Bread Holdings in 2021 and is also an investor in PizzaExpress.