Starbucks buys remaining shares of East China business for $1.3 billion
Starbucks has entered into a definitive agreement to acquire the remaining 50% share of its East China business from long-term joint venture partners, Uni-President Enterprises (UPEC) and President Chain Store (PCSC), for approximately $1.3 billion in cash consideration in the largest single acquisition in the company’s history.
Starbucks has entered into a definitive agreement to acquire the remaining 50% share of its East China business from long-term joint venture partners, Uni-President Enterprises (UPEC) and President Chain Store (PCSC) for approximately $1.3 billion in cash consideration in the largest single acquisition in the company’s history. Starbucks will assume 100% ownership of approximately 1,300 Starbucks stores in Shanghai and Jiangsu and Zhejiang Provinces, building on the company’s ongoing investments in China, its fastest-growing market outside of the United States in terms of store count.
Concurrently, UPEC and PCSC will acquire Starbucks 50% interest in President Starbucks Coffee Taiwan (Taiwan JV) and assume 100% ownership of Starbucks operations in Taiwan for approximately $175 million. Founded in 1997, the Taiwan JV currently operates approximately 410 Starbucks stores in Taiwan.
“Unifying the Starbucks business under a full company-operated structure in China, reinforces our commitment to the market and is a firm demonstration of our confidence in the current local leadership team as we aim to grow from 2,800 to more than 5,000 stores by 2021,” said Kevin Johnson, president and CEO, Starbucks.
East China is a significant and strategic region for Starbucks in China, with Shanghai containing nearly 600 stores, the largest number of stores globally of any city where Starbucks has a presence. In December 2017, Shanghai will also be the first city outside of the United States to welcome the opening of the Starbucks Reserve Roastery.
Both transactions are expected to close in early 2018 and are subject to customary closing conditions, including receipt of required regulatory approvals.