Starbucks’ China has attracted interest from nearly 30 domestic and global PE firms, including buyout heavyweights KKR and Carlyle Group, with bids for a stake in the business valuing it at up to $10bn, according to a report by CNBC citing multiple unnamed sources.
The potential stake sale could become one of the largest consumer-sector deals in China this year.
Contenders who have submitted non-binding proposals also include Hillhouse Capital and Centurium Capital – the majority owner of Luckin Coffee. CNC’s sources suggest Starbucks could retain a 30% minority stake, with the remaining interest distributed among a consortium of investors – none exceeding a controlling threshold individually.
While Starbucks has confirmed it will retain a “meaningful stake” and is not pursuing a full exit, the deal represents a rare opportunity for private equity buyers to acquire a piece of one of the most recognisable global consumer brands, at scale, in the world’s second-largest economy.
The Seattle-headquartered coffee giant began formal discussions late last year, seeking a partner with “like-minded values” to support future growth while navigating sluggish consumer demand and intensifying competition in China. Starbucks’ China operation generates more than 8% of its global revenue and operates over 7,700 stores – second only to the US in store count.
Goldman Sachs is advising on the transaction, which sources suggest could take several months to finalise, with a shortlist of potential investors expected within two months. While Starbucks maintains optionality, insiders say it could walk away if offers fall short of its internal valuation benchmarks.
