Credit: Starbucks
Starbucks has agreed to sell a controlling stake in its China retail operations to Boyu Capital, a Hong Kong-based investment firm, in a deal valuing the business at about US$4 billion. Boyu will hold up to 60% of the new joint venture, while Starbucks will retain 40% and continue to own and license its brand and intellectual property.
Starbucks expects the total value of its China retail business to exceed US$13 billion, including proceeds from the sale, its retained equity, and future licensing income. The partnership marks a strategic shift after the company fully internalized its China operations in 2017.
The new joint venture will continue to be headquartered in Shanghai and will own and operate Starbucks’ 8,000 stores across China today, with a shared vision to grow to as many as 20,000 locations over time. Starbucks said Boyu’s local expertise will help accelerate growth in smaller cities and deepen its connection with Chinese consumers. [TechNode reporting]
