Most bids value Starbucks China at about 10 times expected Ebitda of US$400 million to US$500 million in 2025, 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 US$5 billion, said two people with knowledge of the discussions.
That would make a potential deal one of the most valuable China unit divestments by a global consumer company in recent years.
The offers, which have not been reported previously, would let Starbucks push ahead with the sale in a market where it faces sluggish growth and stiff competition from local brands. Starbucks invited around 10 potential buyers to submit non-binding bids by early September, Reuters reported last month.
Most of those bids set the value for Starbucks China at about 10 times its expected earnings before interest, taxes, depreciation and amortisation (Ebitda) of US$400 million to US$500 million in 2025, said the people.
