Swiss Food and beverage giant Nestle SA and American Coffee chain Starbucks Corp on Tuesday announced the closing of a $7.15bn deal that grants Nestle the perpetual rights to sell Starbucks coffee products globally, outside of the company’s coffee shops.

Commenting on the deal, the CEO of Nestle SA, Mark Schneider, said: “This partnership demonstrates our growth agenda in action, giving Nestle an unparalleled position in the coffee business with full suite of innovative brands. With Starbucks, Nescafe and Nespresso, we bring together the world’s most iconic coffee brands”.

Swiss-based food giant Nestle S.A said it has acquired a licensing agreement from U.S.-based coffee chain Starbucks to sell its bagged coffee globally using Nestlé’s enormous global distribution network.

The deal is said to be worth $7.15bn in cash.

Nestle which is known for its Nescafe and Nespresso coffee brands will market Starbuck’s bagged and pod coffee as well as drinks but will not be involved in any of Starbucks cafes or ready-to-drink products.