Starbucks has entered the second round of its strategic investment process for its China business, with several major private equity firms including including KKR, Carlyle Group, and EQT among the shortlisted bidders, according to a report by Bloomberg.
The report cites unnamed sources familiar with the matter as revealing that FountainVest, Boyu Capital, Primavera Capital, and Hillhouse Investment have also made the shortlist along with tech firms JD.com Inc and Tencent Holdings.
The Seattle-based coffee chain is seeking a local partner to support the long-term growth of its China operations – its second-largest market globally. The move is aimed less at raising capital and more at securing operational expertise, supply chain optimisation, and enhanced digital engagement in the country, according to Starbucks CEO Brian Niccol.
On a recent earnings call, Niccol emphasised that the process is “not about capital” but about ensuring the future strength of the Starbucks brand in the Chinese market. Starbucks plans to grow its store network in China from roughly 7,800 locations to over 20,000 in the coming years.
Sources close to the deal said more than 20 potential investors submitted initial proposals. Around a dozen have advanced to the next stage, where they will gain access to Starbucks China’s financials to conduct due diligence and prepare formal bids.
