Starbucks sells majority stake in China business to Boyu Capital in $4B deal
Starbucks announced Monday that it has sold a majority stake in its China business to Boyu Capital in a deal valuing the unit at $4 billion.
Under the agreement, Boyu will hold a 60% stake, while Starbucks will retain the remaining 40%, News.Az reports, citing foreign media.
The Seattle-based coffee giant said it expects the total value of its China operations—including licensing agreements and its remaining ownership—to exceed $13 billion. “Boyu’s deep local knowledge and expertise will help accelerate our growth in China, especially as we expand into smaller cities and new regions,” CEO Brian Niccol said in a statement.
Starbucks currently operates 8,011 stores across China and aims to eventually reach 20,000 locations. The deal is expected to close during the company’s next fiscal quarter.
In its latest quarterly report, global same-store sales rose 1%, defying expectations of a slight decline and marking the first positive growth in seven quarters. Same-store sales in China increased 2%, just below projections of 2.2%.
Starbucks has had a long presence in the Chinese market, opening its first store in Beijing in 1999 and its first in Shanghai a year later. Initially expanding through licensing agreements with joint venture partners, the company fully consolidated its East China business in 2017 after purchasing the remaining 50% stake for $1.3 billion—a strategy now partially reversed with this latest deal.
“Starbucks has built an iconic brand and a deep connection with Chinese consumers over the past 26 years,” said Alex Wong, partner at Boyu Capital. “This partnership reflects our shared belief in the enduring strength of that brand and the opportunity to bring even greater innovation and local relevance to customers across China.”
Starbucks shares edged up 0.5% following the announcement.
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