Item 7.01
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Regulation FD Disclosure.
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Overview of the Transactions
On July 27, 2017, Starbucks Corporation (Starbucks or the Company) 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 Companys history. Starbucks will assume 100% ownership of approximately 1,300 Starbucks stores in Shanghai and Jiangsu and Zhejiang Provinces, building
on the Companys ongoing investments in China, its fastest-growing and largest market outside of the United States in terms of store count.
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.
Conditions to Completion of the Transactions
Both transactions are expected to close by early calendar year 2018 and are subject to customary closing conditions, including receipt of
required regulatory approvals.
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.
The information contained in this Current Report on Form 8-K
is being furnished and shall not be deemed filed for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the Exchange Act), or otherwise subject to the liabilities of that Section. The information
contained in this Current Report on Form 8-K shall not be incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended (the Securities Act), or the Exchange Act, except as
shall be expressly set forth by specific reference in any such filing.
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 Companys filings with the Securities and Exchange Commission, including the Risk Factors section of the Companys
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.