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Free Hospitality Publications
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Restaurant Industry News
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Tuesday October 24th, 2006 |
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Starbucks Acquires from H&Q Asia Pacific Majority Ownership of Operations in Beijing and Tianjin
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Transaction Supports Starbucks Growth Strategy and Demonstrates Commitment to China |
Starbucks Corporation ('Starbucks') (Nasdaq:SBUX) today announced that it has acquired from H&Q Asia Pacific and other shareholders equity ownership of High Grown Investment Group (Hong Kong) Limited, which in turn is the controlling shareholder of Beijing Mei Da Coffee Co. Ltd. ('Beijing Mei Da Coffee'), the operator of 60 Starbucks retail stores in Beijing and Tianjin, People's Republic of China, and an authorized licensee of Starbucks Coffee International. The financial terms of this transaction were not disclosed. Beijing Sanyuan Company continues to be a minority shareholder of Mei Da.
As controlling shareholder of Beijing Mei Da Coffee, H&Q Asia Pacific, a leading private equity firm that invests throughout the Asia Pacific region, was instrumental in bringing Starbucks Coffee to China, opening the first Starbucks store in China in 1999. H&Q Asia Pacific, along with a handful of investment partners, helped successfully expand Starbucks presence from a single store in 1999 to more than 60 stores in Beijing and Tianjin at the end of August.
'We are very excited about the significant increase of equity ownership in these markets, which we believe demonstrates our commitment to China, and which we believe will permit us to achieve greater operational efficiencies, accelerate our expansion in China, and contribute to the leisure environment within Beijing and Tianjin,' said Jinlong Wang, president, Starbucks Greater China. 'Additionally, this transaction allows Starbucks to be more integrated into the communities by building on the strong human connections that Beijing Mei Da Coffee helped us establish in this market with our local partners (employees) and customers. We are now poised to expand rapidly in this important region two years before the 2008 Beijing Olympics.'
'Today's announcement is a testament to the strength of the Starbucks retail brand, and we are proud to have played an integral role in introducing and establishing Starbucks as the premium coffee brand in China with great brand recognition and high customer satisfaction,' said Dr. Ta-lin Hsu, founder and chairman of H&Q Asia Pacific. 'This transaction demonstrates the importance of retail brands in China and the important role a private equity firm like H&Q Asia Pacific can play in helping to successfully establish market acceptance of a premier brand like Starbucks.'
Starbucks has been a part of the communities where it operates in China since the opening of the Beijing location in 1999. As of October 1, 2006, approximately 10,000 partners were delivering the Starbucks Experience to over 430 stores in Greater China, which includes more than 190 stores in 19 cities on Mainland China. Starbucks also develops and actively participates in several local community programs. The most notable being the 40 million RMB ($5 million USD) China Education Project, which Starbucks established in September 2005 with Give2Asia, a U.S.-based nonprofit organization founded by The Asia Foundation to promote philanthropy. The China Education Fund was established to help improve education, especially among poor students from rural regions in China.
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