Starbucks to Sell 60% of Its China Business to a Private Equity Firm

Starbucks has agreed to sell up to 60 percent of its retail operations in China to private equity firm Boyu Capital for $4 billion. The deal will create a joint venture where Boyu and Starbucks will operate the nearly 8,000 stores in China. Starbucks will retain ownership and licensing of its brand and intellectual property for the new entity. The company anticipates the total value of its Chinese retail business to surpass $13 billion, accounting for the sale proceeds, its remaining 40 percent stake, and projected licensing fees over the next ten years. Starbucks CEO Brian Niccol stated that this partnership aims to integrate the Starbucks brand, coffee expertise, and culture with Boyu's extensive knowledge of the Chinese market and l... download the app to read more