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 licensing rights. The business will remain headquartered in Shanghai.
Starbucks CEO Brian Niccol says both companies envision expanding the number of locations in China to 20,000, from the current 8,000 coffeehouses.
“Boyu’s deep local knowledge and expertise will help accelerate our growth in China, especially as we expand into smaller cities and new regions,” Niccol said in a statement. “We’ve found a partner who shares our commitment to a great partner experience and world-class customer service. Together we will write the next chapter of Starbucks’ storied history in China.”…