Bain Capital agrees to acquire Gong cha from TA Associates

Bain Capital has agreed to acquire the popular bubble tea brand Gong cha from TA Associates, concluding the private equity firm's seven-year investment in the rapidly expanding beverage franchise. The final transaction, anticipated in the fourth quarter of 2026 pending regulatory clearances and closing conditions, has not disclosed financial specifics.

TA Associates initially invested in Gong cha in 2019, aiding the company in expanding internationally and executing value creation strategies. Under TA's guidance, Gong cha broadened its global presence, acquired strategic assets, and implemented technological advancements in store operations. Notable accomplishments include acquiring US East and West Coast master franchise rights and launching the "Digital Kitchen" model, which uses automated beverage dispensing technology.

Currently, Gong cha runs nearly 2,200 outlets across 33 markets, serving over 150 million beverages annually, positioning itself as one of the world's largest specialty tea franchises. TA Associates Managing Director Edward Sippel praised the investment for Gong cha's transformation into a global category leader, highlighting its robust franchise network, unique product line, and international growth strategy.

Bain Capital aims to further expand the brand, particularly in Japan, while continuing to invest in operations, marketing, and franchise development. Gong cha's CEO Paul Reynish expressed intent to build upon the progress made during its partnership with TA as it enters a new growth phase under Bain Capital. JP Morgan and NorthPoint acted as advisors for the transaction, with Nomura Securities serving as the financial adviser to Bain Capital.