Starbucks Sells 60% of China Unit to Boyu at $4 Billion Value

Starbucks Corp. agreed to sell a majority stake in its China business to private equity firm Boyu Capital at a $4 billion enterprise value in a bid to improve the coffee chain’s flagging fortunes in the country.

Boyu Capital will hold up to a 60% interest in Starbucks’ retail operations in China through a new joint venture with the coffee seller, the companies said in a statement. Starbucks will hold the remaining 40% and continue to license the brand and intellectual property to the joint venture.