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France 24
09-07-2025
- Business
- France 24
Starbucks receives bids for stake in China business: US media
The coffee chain's China business, its second biggest after its US operation, drew non-binding offers from a mix of Chinese and foreign private equity firms valuing the enterprise at between $5 and $10 billion, CNBC reported, citing three people familiar with the matter. Under one possible outcome, Starbucks could retain a 30 percent stake with a group of buyers each holding less than this share, CNBC said. A note from TD Cowen said a valuation of between $2.6 billion and $4.7 billion is "more realistic" than one as potentially as high as $10 billion. Starbucks declined to comment directly on any offers received but said it would not exit China. "We are looking for a strategic partner with like-minded values, who shares our vision to provide a premium coffeehouse experience," a Starbucks spokesperson said. "We remain committed to China and want to retain a meaningful stake in the business. Any deal must make sense for Starbucks business and partners." The bidders include Centurium Capital, Hillhouse Capital and US private equity firms Carlyle Group and KKR, CNBC reported. As of the end of March, Starbucks had around 7,700 cafes in more than 250 cities in China, employing more than 60,000 people. Only the United Staets, with more than 17,000 cafes is bigger for the chain. Starbucks has been in turnaround mode, naming former Chipotle CEO Brian Niccol as CEO in August 2024 after the short tenure of Laxman Narasimhan failed to reignite growth. In its most recent quarter ending March 30, Starbucks had flat revenues in China compared with the year-ago period, with the number of transactions rising four percent but the average ticket falling four percent. In a conference call in late April, Niccol told analysts that Starbuck's China sales had benefited during the period from adding new sugar-free beverages and introducing options at different price points. Shares of Starbucks fell 0.2 percent in afternoon trading.
Yahoo
09-07-2025
- Business
- Yahoo
Starbucks evaluates investor proposals for China operations
Starbucks is reviewing offers from potential investors interested in acquiring a majority stake in its China business, as reported by Bloomberg. The Seattle-based coffee chain is shortlisting bidders for the next phase of negotiations, with those selected expected to gain access to financial and operational data to assess the value of Starbucks' Chinese assets. Initially, Starbucks aimed to sell a minority stake to a partner capable of driving growth in its China operations. However, the company is now open to divesting a larger share based on valuation and other considerations. In June 2025, industry players and private equity firms submitted non-binding proposals, most seeking a controlling stake to secure decision-making authority. The evaluation of Starbucks' China business is still in its early stages, with no final decisions made regarding the deal's structure or potential partners. Starbucks affirmed its commitment to the market, stating that: '... we remain committed to China and want to retain a meaningful stake in the business' and highlighting its belief in 'significant long-term potential in China.' The review of Starbucks' China operations, first reported by Bloomberg News in May 2025, includes the possibility of a stake sale, with the business potentially valued at several billion dollars. The company has appointed its first chief growth officer for China to focus on partnerships with entertainment brands and pop culture figures to attract younger customers. Meanwhile, domestic competitor Luckin Coffee overtook Starbucks in 2023 to become China's largest coffee retailer. In June 2025, Starbucks promoted Mike Grams, North America chief coffeehouse officer, to chief operating officer as part of a strategy to improve team cohesion and leadership accountability, as set out by CEO Brian Niccol. "Starbucks evaluates investor proposals for China operations" was originally created and published by Verdict Food Service, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Reuters
09-07-2025
- Business
- Reuters
Starbucks China attracts bids at up to $10 billion valuation, CNBC reports
July 9 (Reuters) - Starbucks' (SBUX.O), opens new tab China business has attracted offers for a potential stake sale, valuing the coffee chain unit at up to $10 billion, CNBC reported on Wednesday, citing people familiar with the matter. Asia-based private equity firms Centurium Capital and Hillhouse Capital as well as U.S. peers Carlyle Group (CG.O), opens new tab and KKR & Co (KKR.N), opens new tab are among the contenders vying for a stake in Starbucks' China business, the report added. There is a possibility of Starbucks retaining a 30% stake, with the rest split among a group of buyers, each holding less than 30%, the CNBC report said. Starbucks, Centurium, Hillhouse, Carlyle and KKR did not immediately respond to Reuters requests for comment. Reuters could not immediately verify the report. Starbucks said last month that it is not currently considering a full sale of its China operations, after the coffee maker kicked off a formal sale process of its China operations in May. Almost 30 domestic and foreign private equity firms in China have submitted non-binding offers and Starbucks is in the process of evaluating the offers, deal structure proposals and value creation pitches from the bidders, the report said. The bidders could be shortlisted within two months, but the entire deal is unlikely to be completed by the end of this year, CNBC said.
South China Morning Post
09-07-2025
- Business
- South China Morning Post
Starbucks draws interest for controlling stake in China unit
Starbucks has received proposals from prospective investors in its China business, most of whom are eyeing a controlling stake in the operation, according to people familiar with the matter. The Seattle-based company was in the process of sifting through proposals and shortlisting a group of potential investors for a next round of bidding, the people said, asking not to be identified because the matter is private. The company could share financial and operating details with those bidders to help them assess the valuation of its Chinese assets, the people said. While Starbucks's preferred option was to sell a minority stake to a partner that could help return its Chinese operations to growth, it could consider selling a larger holding based on valuation and other factors, the people said. Prospective partners, including industry players and private-equity firms, submitted non-binding proposals in June, the people said. Most want a controlling stake as that could give them decision-making powers and was better aligned with their investment strategies, the sources added. The review of Starbucks's Chinese business was still at an early stage, and no final decisions had been made on the structure, valuation and potential bidders, the people said. In a statement, Starbucks said it sees 'significant long-term potential in China'.
Yahoo
09-07-2025
- Business
- Yahoo
Starbucks China attracts bids at up to $10 billion valuation, CNBC reports
(Reuters) -Starbucks' China business has attracted offers for a potential stake sale, valuing the coffee chain at up to $10 billion, CNBC reported on Wednesday, citing people familiar with the matter. Centurium Capital, Hillhouse Capital and U.S. private equity firms Carlyle Group and KKR & Co are among the contenders vying for a stake in Starbucks' China business, the report added. Reuters could not immediately verify the report.
