Starbucks’ China business has drawn bids valuing the unit at around $5 billion, according to people familiar with the matter, making it one of the largest recent divestments of a China operation by a global consumer brand. The offers, submitted by about 10 invited bidders, place the valuation at roughly 10x the business’s projected 2025 EBITDA of $400–500 million, with at least one bidder proposing a multiple in the high teens.
The valuation is broadly in line with Starbucks’ rival Luckin Coffee, currently trading at nine times forward EBITDA, though far below Starbucks’ global enterprise value of over 19x forecast EBITDA. Starbucks has yet to decide the stake size it will divest but has ruled out a full exit, emphasizing it will retain a meaningful interest.
Potential bidders included global private equity firms such as Carlyle, EQT, Hillhouse Investment and Primavera Capital to submit initial bids. Other potential buyers selected included Bain Capital, KKR & Co., and technology major Tencent.
It is not immediately clear if all of them submitted non-binding offers. Bain, EQT, Tencent, Carlyle and Primavera declined to comment. The others did not respond to a request for comment.
Source: Reuters
