Starbucks to buy out Japanese partner

 

Starbucks 2Starbucks says it will buy out its partner in Japan for $US913 million ($A987.83 million), taking over complete control of operations in its second largest market by store sales.

The move comes as the Seattle coffee giant increasingly banks on international growth.

Starbucks said the purchase will help it grow in Japan and introduce new products through various channels, such as its tea brand, Teavana.

Starbucks will acquire the 60.5 per cent it doesn’t own in its Japanese joint venture from Sazaby League, a retail company based in Tokyo, in a two part process.

Starbucks will first buy a 39.5 per cent stake for $US505 million, gaining control of the joint venture before the end of 2014. The remaining 21.5 per cent will change hands in 2015 for $US408.5 million. The deal took place after Sazaby told Starbucks it wanted to cash out of the business.

The transaction won’t change Starbucks’ financial targets for 2014, the company said.

The joint venture, dubbed Starbucks Japan, was founded in 1995 and it operates more than 1000 stores. It employs more than 25,000 people.

MCT

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