Copyright The New York Times
Starbucks said on Monday that it had agreed to sell up to 60 percent of its retail operations in China to Boyu Capital, a private equity firm, in a deal valued at $4 billion. The agreement states that Boyu and Starbucks would operate its nearly 8,000 stores there under a joint venture. Starbucks will own and license its brand and intellectual property to the new entity, according to a statement. Starbucks said it expected the value of its retail business in China to exceed $13 billion, which includes the proceeds from the sale, the company’s remaining 40 percent stake and the expected value of licensing fees over the next decade. “This approach allows us to combine the strength of the Starbucks brand, our coffee expertise, the third place and our unique partner culture with Boyu’s deep knowledge of the China market and local expertise,” Brian Niccol, Starbucks’s chief executive, said in a statement. Mr. Niccol added that the joint venture agreement would be completed in early 2026. Boyu has offices in Singapore, Shanghai, Hong Kong and Beijing. China has been a big bet for Starbucks going back decades. Starbucks opened its first shop in China in 1999, at a time when tea dominated and a coffee culture was practically nonexistent. But as China’s middle class grew and aspired for iPhones, Louis Vuitton handbags and other international brands to signal its newfound wealth, Starbucks flourished. Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times. Thank you for your patience while we verify access. Already a subscriber? Log in. Want all of The Times? Subscribe.
