Starbucks China Acquisition: Carlyle, EQT, HongShan Among Final Bidders

Private equity firms Carlyle, EQT, and HongShan are among the final bidders for Starbucks China. The sale is part of Starbucks' plan to divest its Chinese operations, which have been struggling due to a slowdown in the country's economy and increased competition. The coffee giant has over 4,000 locations in China, making it its second-largest market. The sale is expected to fetch around $1 billion.

Starbucks (SBUX.US) has narrowed down the list of potential buyers for its China business, with private equity firms Carlyle Group, EQT, and HongShan among the final bidders. The transaction, which is expected to be finalized by the end of October, marks a significant step in Starbucks' strategy to divest its Chinese operations Boyu Capital, Carlyle, EQT, HongShan Reportedly ...^[1].

The final round of negotiations includes Carlyle Group, EQT, and HongShan, along with Chinese private equity firm Primavera Capital. These firms are preparing final offers for a controlling stake in Starbucks' China operations, according to sources close to the process Carlyle, EQT, HongShan, among final bidders for Starbucks China, sources say^[2]. The deal structure, including the size of the stake being sold, remains negotiable, and Starbucks aims to maintain a meaningful stake in the China business Carlyle, EQT, HongShan, among final bidders for Starbucks China, sources say^[2].

The sale comes as Starbucks faces declining market share in China, where its cafes account for over a fifth of its global locations. The company's market share in China fell to 14% last year from 34% in 2019, due to intensifying competition from local rivals such as Luckin Coffee Carlyle, EQT, HongShan, among final bidders for Starbucks China, sources say^[2]. To counter these challenges, Starbucks has implemented measures like price reductions and the introduction of new, localized products, which have led to a 2% increase in comparable-store sales in the latest quarter Carlyle, EQT, HongShan, among final bidders for Starbucks China, sources say^[2].

The sale of Starbucks' China operations is expected to fetch around $1 billion, with the potential buyers valuing the unit at around $5 billion Bidders value Starbucks China at $5bn as Carlyle, EQT, Bain, and KKR circle stake^[3]. The transaction is one of the largest potential China divestments by a global consumer company in recent years, drawing interest from several private equity heavyweights Bidders value Starbucks China at $5bn as Carlyle, EQT, Bain, and KKR circle stake^[3].

As the deal progresses, investors will be closely watching to see how the sale impacts Starbucks' financial performance and market share in China. The coffee giant's ability to maintain a significant stake in the China business will also be a key factor in determining the success of the divestment.