Starbucks Sells Majority Stake in China Business to Boyu Capital for $4 Billion
Starbucks Corporation (SBUX) shares climbed in after-hours trading following its announcement to sell a 60% stake in its China operations to Boyu Capital for $4 billion. The deal leaves Starbucks with a 40% minority interest while retaining brand licensing rights in its second-largest market globally.
The coffee chain, which entered China in 1999 and operates 8,000 stores there, has faced slowing growth amid fierce competition from local rivals. CEO Brian Niccol revealed the company evaluated nearly 20 bids before selecting Boyu as its strategic partner for expansion into lower-tier cities.
This transaction values Starbucks' China business at over $13 billion including intellectual property rights. The partnership aims to more than double Starbucks' Chinese store count to 20,000 locations long-term.