Starbucks has agreed to acquire the remaining 50% share of its East China business from longtime joint venture partners Uni-President Enterprises and President Chain Store for approximately $1.3 billion in cash. The deal represents the largest acquisition in the iconic coffee company’s history, more than doubling its $620 million deal in 2012 with Teavana, a specialty tea retailer that Starbucks plans to shutter in the coming year
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Then again, Starbucks hasn’t been much of a buyer over the past decade. Since 2007, the company has completed just eight M&A transactions globally and none since picking up Costa Rican coffee farm Hacienda Alsacia in 2013, per the PitchBook Platform.
By unifying the Starbucks business in China under a single structure, the deal reinforces the company’s commitment to increasing its presence in its fastest-growing market outside the US. Starbucks plans to increase its store count in China from 2,800 to more than 5,000 by 2021.
Article by PitchBook
