"In a deal valued at $4 billion, Boyu is acquiring 60% of Starbucks China's business, with plans to close in the first three months of the year, per a press release. The release said that the Boyu partnership would help elevate Starbucks' customer experience in China and speed expansion into new cities. In an open letter on Monday, Starbucks CEO Brian Niccol said that through the Boyu partnership, he aims for Starbucks to grow from 8,000 stores in Chinato over 20,000."
"Starbucks' stock was flat in after-hours trading, and it's down more than 16% in the last year. The Boyu sale comes at a critical point for Starbucks China. The country is Starbucks' second-largest market after the US. In the latest quarter, China's$831 million in salesmade up about 8.7% of the chain's total sales globally. But it has posted several quarters of weak sales in the country."
Starbucks is selling 60% of its China operations to Boyu Capital in a deal valued at $4 billion, with closing expected within the first three months of the year. Boyu will become the majority owner and aims to elevate customer experience and accelerate expansion into new Chinese cities. CEO Brian Niccol intends to grow Starbucks China from about 8,000 stores to over 20,000. China is Starbucks' second-largest market, generating $831 million in the latest quarter, about 8.7% of global sales. Starbucks has reported multiple quarters of weak sales in China and its stock is down over 16% year over year.
Read at Business Insider
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