The sale of Starbucks China's equity is in its final stages, with the deal expected to be finalized by the end of October 2025. Starbucks has shortlisted several private equity firms for the sale, including global players Carlyle Group and EQT, along with regional firms HongShan Capital Group, Boyu Capital, and Primavera Capital. These firms are preparing to submit their final binding offers for a controlling stake in Starbucks' China operations.
The valuation of Starbucks China is estimated at around $5 billion, based on projected 2025 earnings before interest, taxes, depreciation, and amortization (EBITDA) of $400–$500 million and a valuation multiple of roughly 10 times EBITDA. The exact stake size available for sale is still under negotiation, but Starbucks intends to retain a meaningful stake and its coffee roasting facility in China to maintain quality control.
This sale comes amid a decline in Starbucks' market share in China, which fell from 34% in 2019 to about 14% in 2024, challenged by strong competition from local rivals like Luckin Coffee. Despite this, Starbucks is seeing some sales growth in China, supported by price cuts on select products and enhanced localization of its offerings.
The transaction is considered one of the largest potential divestments by a global consumer brand in China in recent years, attracting significant interest from top private equity investors. Starbucks is positioning the equity sale as a partnership opportunity to help revive growth in its important international market while refocusing its global strategy.
In summary, Starbucks China equity sale is at an advanced stage with deals expected soon. The sale will likely bring in a controlling private equity partner while Starbucks retains involvement in its China business. This move reflects challenges in the highly competitive Chinese coffee market but also potential for renewed growth with new strategic investors.finance.yahoo+4
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