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.

SEATTLE (AP) — 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.

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.”

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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