US EditionStarbucks to sell control of China business to Boyu Capital in $4 billion deal
Starbucks retains 40% ownership and brand rights while Boyu Capital takes majority control to expand into smaller cities and compete with local rivals like Luckin Coffee.
- Starbucks is selling a 60% stake in its China business to investment firm Boyu Capital for $4 billion, valuing its retail operations in China at $13 billion.
- Starbucks entered China more than 25 years ago and it is now the company's second-largest market after the US, but has struggled in recent years against local rivals like Luckin Coffee.
- The new joint venture will be headquartered in Shanghai, with Starbucks owning 40% and plans to grow to 20,000 locations in China from the current 8,000.
166 Articles
166 Articles
Starbucks sells Chinese arm to local investors
Starbucks has decided to sell a majority stake of its struggling China unit to Boyu Capital after the Chinese private equity firm convinced the coffee chain it could grow the business with its existing management team, according to people familiar with the process.
Starbucks is the latest Western brand to change tactics in China
A decade after Starbucks’ then-CEO, Howard Schultz, said China had the potential to become the U.S. coffee chain’s biggest market, the company is dramatically changing its approach there, selling a majority stake in its China business to an outside partner analysts say is better equipped to help the brand thrive. A confluence of several factors has made it much harder for Seattle-based Starbucks to pursue its China strategy as initially planned:…
Starbucks sells majority stake in China stores to local PE firm
Starbucks will sell a majority stake in its China business to a private-equity firm run by the grandson of a former Chinese president. Boyu Capital reportedly beat out several Western investors including Carlyle and EQT for the business and its 8,000 stores in China, where Starbucks introduced coffee culture to a tea-drinking public but lost ground to local rivals selling pineapple and baiju lattes. CEO Brian Niccol is pressing for a return to S…
Starbucks Selling Control of China Business to Boyu Capital in $4 Billion Deal
Starbucks said on Nov. 3 that it is selling a majority stake in its China retail business to Hong Kong-based private equity firm Boyu Capital for $4 billion. The retail coffee giant, which values the China business at more than $13 billion, will form a joint venture to revitalize growth in its second-largest market. While Boyu will hold a 60 percent stake in the business, Starbucks will retain a 40 percent interest, including brand ownership and…
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