Company announces agreements to acquire the
remaining 50% of its East China JV and divest its 50% interest in
its Taiwan JV; both transactions undertaken with long-term JV
partners President Chain Store Corporation and Uni-President
Enterprises Corporation
Company Reaffirms its Commitment to Operating
5,000 Stores in Mainland China by 2021
Starbucks Corporation (Nasdaq: SBUX) today announced entry into
a definitive agreement to acquire the remaining 50% share of its
East China (“East China JV”) business from long-term joint venture
partners, Uni-President Enterprises Corporation (“UPEC”) and
President Chain Store Corporation (“PCSC”) for approximately $1.3
billion in cash consideration in the largest single acquisition in
the Company’s history. Starbucks will assume 100% ownership of
approximately 1,300 Starbucks stores in Shanghai and Jiangsu and
Zhejiang Provinces, building on the Company’s ongoing investments
in China, its fastest-growing market outside of the United States
in terms of store count.
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Starbucks acquires remaining shares of
East China joint venture and reinforces 5,000 store commitment in
Mainland China by 2021. (Photo: Business Wire)
Concurrently, UPEC and PCSC will acquire Starbucks 50% interest
in President Starbucks Coffee Taiwan Limited (“Taiwan JV”) and
assume 100% ownership of Starbucks operations in Taiwan for
approximately $175 million. Founded in 1997, the Taiwan JV
currently operates approximately 410 Starbucks stores in
Taiwan.
“Unifying the Starbucks business under a full company-operated
structure in China reinforces our commitment to the market and is a
firm demonstration of our confidence in the current local
leadership team as we aim to grow from 2,800 to more than 5,000
stores by 2021,” said Kevin Johnson, president and ceo, Starbucks
Coffee Company. “Similar to our decision in 2011 to fully license
our Hong Kong and Macau market operations, we are pleased to
transition our business in the Taiwan market to our long-time
partners Uni-President Enterprises Corporation and President Chain
Store Corporation, both highly-recognized local operators, as we
continue to grow in Taiwan. This is a critical next-step as we
advance our multifaceted China growth strategy for long-term
profitable growth in Asia.”
East China is a significant and strategic region for Starbucks
in China, with Shanghai containing nearly 600 stores, the largest
number of stores globally of any city where Starbucks has a
presence. In December 2017, Shanghai will also be the first city
outside of the United States to welcome the opening of the
ultra-premium Starbucks Reserve™ Roastery.
“This is the beginning of yet another exciting new chapter for
Starbucks in China. Full ownership will give us the opportunity to
fully leverage our robust business infrastructure to deliver an
elevated coffee, in-store third place experience and digital
innovation to our customers, and further strengthen the career
development opportunities for our people,” said Belinda Wong, ceo,
Starbucks China. “Our East China partners’ relentless pursuit
of operational excellence and leadership has provided us a solid
foundation to maximize the unprecedented growth opportunities ahead
and we look forward to extending our world-class network of unique
programs to support their personal and professional dreams.”
“We’ve had a strong friendship with Starbucks for nearly 20
years, starting with the opening of the first store in Taiwan and
then further extending our partnership with the opening of the
first store in East China,” said Alex Lo, chairman, Uni-President
Enterprises Corporation. “We are confident that our new ownership
model and continued collaboration with Starbucks will enable us to
be even more focused on delivering an elevated Starbucks Experience
to our customers in the Taiwan market.”
Starbucks will discuss the financial impact of these
transactions during its third quarter fiscal year 2017 earnings
conference call at 2:00 p.m. PT today, Thursday, July 27. Both
transactions are expected to close by early calendar year 2018 and
are subject to customary closing conditions, including receipt of
required regulatory approvals.
About Starbucks Coffee Company
Since 1971, Starbucks has been committed to ethically sourcing
and roasting high-quality arabica coffee. Today, with stores around
the globe, the company is the premier roaster and retailer of
specialty coffee in the world. Through our unwavering commitment to
excellence and our guiding principles, we bring the unique
Starbucks Experience to life for every customer through every cup.
To share in the experience, please visit us in our stores or online
at www.starbucks.com.
About Uni-President Enterprises Corporation
Uni-President Enterprises Corp. was established in 1967 and
listed in 1987. We are not only the biggest food and beverage
manufacturing company in Taiwan but also have business in China and
Southeast Asia. We have also expanded our business scope to include
retail and logistics so that we can provide the safest and the best
experience to consumers by building vertical integration. To know
more details about our company, please visit us online at
www.uni-president.com.tw.
About President Chain Store Corporation
Established in 1987 and listed on Taiwan Stock Exchange in 1997,
President Chain Store Corp. (PCSC) is the largest convenience store
operator in Taiwan, with over 5,100 7-ELEVEN stores at the end of
2016. PCSC has diversified into other retail businesses, such as
restaurants, drugstores, department stores, supermarkets and online
shopping. Our business operation areas include Taiwan, Mainland
China, the Philippines and Japan. Uni-president, the largest food
and beverage company in Taiwan, is PCSC’s parent company with 45.4%
ownership.
Forward-Looking Statements
Certain statements contained herein are "forward-looking”
statements within the meaning of the applicable securities laws and
regulations. Generally, these statements can be identified by the
use of words such as “anticipate,” “expect,” "believe," "could,"
"estimate," "feel," "forecast," "intend," "may," “plan,"
"potential," “project,” “should," “will," “would,” and similar
expressions intended to identify forward-looking statements,
although not all forward-looking statements contain these
identifying words. These statements are based on information
available to Starbucks as of the date hereof, and Starbucks actual
results or performance could differ materially from those stated or
implied, due to risks and uncertainties associated with its
business. These risks and uncertainties include, but are not
limited to, the failure of the parties to consummate the
transactions due to commercial, regulatory or other reasons, as
well as general economic and industry factors such as coffee, dairy
and other raw materials pricing and availability, successful
execution of internal performance and expansion plans, fluctuations
in U.S., Chinese and other international economies and currencies,
the impact of initiatives by competitors, the effect of legal
proceedings, and other risks detailed in the Company's filings with
the Securities and Exchange Commission, including the "Risk
Factors" section of the Company's Annual Report on Form 10-K for
the fiscal year ended October 2, 2016. The Company assumes no
obligation to update these forward-looking statements.
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version on businesswire.com: http://www.businesswire.com/news/home/20170727005700/en/
Starbucks CorporationMedia:Marianne Duong,
206-318-7100press@starbucks.comorInvestor Relations:Tom
Shaw, 206-318-7118investorrelations@starbucks.com
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