Starbucks considers selling majority stake in its Japan business: Reuters
Starbucks may sell a majority stake of its Japan business, their biggest overseas company-operated market, in a deal worth around $3 billion, sources say.
Starbucks is considering selling a majority stake in its Japan business, sources have revealed. The potential deal could value the company's biggest overseas market at approximately $3 billion, according to two people familiar with the matter. Starbucks Japan currently operates 1,883 stores, making up nearly 9% of the coffeehouse chain's global presence.
The Japanese operations were acquired from Sazaby League in 2014 for about $914 million, initially valued at roughly $1.5 billion. Starbucks has been soliciting pitches from financial advisers and is open to selling a majority stake, though the exact stake size and final valuation remain to be determined through negotiations. The stake sale comes as Starbucks seeks to reshape its global portfolio under CEO Brian Niccol, who has been closing stores and reducing corporate staff in North America to improve profitability.
The process to divest a majority stake in Starbucks Japan is expected to attract interest from global and local buyout firms, potentially beginning in the fourth quarter. Analysts believe monetizing the Japan unit could be strategic, as the market is not central to Starbucks' brand and could help refocus efforts on revitalizing its core U.S. business.
In June, Starbucks ceded control of its China operations to Boyu Capital in a deal valued at $4 billion, highlighting the challenges faced by the company in growing markets amid high competition and slowing growth.
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