Starbucks and Boyu Announce Joint Venture for Growth in China
This partnership represents a key milestone in Starbucks' ongoing transformation and highlights its dedication to accelerating long-term growth in China, one of the company’s fastest-growing global markets.
Combining Starbucks' iconic global brand with Boyu Capital's deep local expertise will support expansion into new cities and regions across China while maintaining a premium customer experience and leadership in coffee.
Details of the Joint Venture
- Starbucks Coffee Company (Nasdaq: SBUX) announced an agreement to form a joint venture with Boyu Capital, a leading alternative investment firm, to operate Starbucks retail stores in China.
- The joint venture will be operated by both Boyu and Starbucks, with Boyu holding up to 60% interest in Starbucks retail operations in China.
- Starbucks will retain a 40% interest and continue owning and licensing the Starbucks brand and intellectual property to the new entity.
- Boyu will acquire its stake based on a cash-free, debt-free enterprise value of about $4 billion.
- Starbucks expects the total value of its China retail business to exceed $13 billion, including proceeds from the sale, Starbucks’ retained interest, and future licensing revenue over the next decade or more.
"This partnership marks a significant milestone in Starbucks ongoing transformation and underscores its commitment to accelerating long-term growth in China, one of the company’s most important and fastest-growing markets globally."
"Boyu will acquire its interest based on a cash-free, debt-free enterprise value of approximately $4 billion."
Starbucks’ continued involvement and the strong partnership with Boyu aim to drive expansion and uphold the premium Starbucks experience for customers throughout China.
Summary: Starbucks partners with Boyu Capital in a joint venture, leveraging local expertise and global brand strength to accelerate growth and expand retail operations across China’s rapidly evolving market.