US Edition
Starbucks China valued at about $5 billion by bidders, sources say
Starbucks faces declining market share and strong competition from Luckin Coffee, with bids valuing its China operations around $5 billion based on expected earnings.
- Starbucks reached out to roughly ten interested parties to provide initial non-binding offers for its China business by early September, with some bids valuing the company at up to $5 billion.
- This bidding follows Starbucks' decision not to sell the entire China business and reflects increased competition and slower growth in the Chinese market.
- Most bidders valued Starbucks China at roughly 10 times its expected 2025 EBITDA of $400 million to $500 million, a multiple comparable to rival Luckin Coffee’s nine times EBITDA valuation.
- Starbucks CEO Brian Niccol said in July it would keep a meaningful stake in China while the chain reported a 2% comparable-store sales growth in the quarter ended June 29.
- The strong bids could enable Starbucks to move forward with a partial sale, representing one of the most valuable divestitures of a China-based business by an international consumer brand in recent years.
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11 Articles
The Star Kuala Lumpur
klsescreener.comStarbucks China valued at about US$5bil by bidders, sources say
HONG KONG: Most of the bidders seeking to buy a portion of Starbucks' China operations have submitted offers valuing the business at as much as $5 billion, said two people who have knowledge of the deal discussions.
Starbucks China valued at about $5 billion by bidders, sources say
Most of the bidders seeking to buy a portion of Starbucks' China operations have submitted offers valuing the business at as much as $5 billion, said two people who have knowledge of the deal discussions.
Roundup: Bids for Starbucks China Stake Reach $5B Valuation - Mingtiandi
Chinese coffee competition leads today’s look at real estate news from around Asia as private equity giants submit bids to take over Starbucks China operation. Also making the news is Japanese backing for a Sydney residential project and some encouraging... Read More>> The post Bids for Starbucks China Stake Reach $5B Valuation and More Asia Real Estate Headlines appeared first on Mingtiandi.
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