GENEVA, May 7 (Xinhua) -- Switzerland-based food giant Nestle said Monday it was set to pay Starbucks 7.15 billion U.S. dollars for the right to sell the American chain's products outside its worldwide coffee shops.

Under the alliance deal announced on Monday, Seattle-based Starbucks and Nestle have agreed to work together on marketing strategies and innovation.

"This transaction is a significant step for our coffee business, Nestle's largest high-growth category," Nestle chief executive officer (CEO) Mark Schneider said in a statement.

"With Starbucks, Nescafe and Nespresso, we bring together three iconic brands in the world of coffee."

As part of this transaction, Starbucks will receive an up-front cash payment of 7.15 billion U.S. dollars.

The transaction does not include the transfer of any fixed assets, which facilitates a smooth and efficient integration, said the Swiss-based company.

Nestle said it expected this business to contribute positively to its earnings per share and organic growth targets as from 2019.

Nestle's ongoing share-buyback program will remain unchanged.

Some 500 Starbucks employees will join Nestle to drive performance of the existing business and global expansion.

"This global coffee alliance will bring the Starbucks experience to the homes of millions more around the world through the reach and reputation of Nestle," Kevin Johnson, president and CEO of Starbucks was quoted as saying in the Nestle statement.

"This historic deal is part of our ongoing efforts to focus and evolve our business to meet the changing consumer needs," he said.?