Nov. 4 (UPI) -- Starbucks announced Tuesday that it sold control of its stores in China to Boyu Capital for $4 billion.
The two companies will operate a joint venture in China in which Starbucks keeps a 40% interest, selling the operation and 60% to Boyu. Starbucks will keep the brand and intellectual property.
Starbucks said it expects the total value of its China retail business to be more than $13 billion from three sources: proceeds from the sale to Boyu, the value of Starbucks' retained interest in the venture, and the net present value of ongoing licensing economics over the next decade or longer.
"Starbucks has built an iconic brand and a deep connection with Chinese consumers over the past 26 years," said Alex Wong, partner at Boyu. "Together, we aim to combine Starbucks' global coffee leadership with Boyu's deep market insights and expertise to accelerate growth and create exceptional experiences for millions of customers."
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