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Starbucks set to purchase remaining Starbucks Japan shares for $913.5 million

With franchise rights set to expire, Starbucks Japan partner Sazaby approached Starbucks about selling its ownership stake.

September 24, 2014

Starbucks Corporation has announced plans to acquire the remaining 60.5-percent share of Starbucks Coffee Japan Ltd. that the company currently does not own through a two-step tender offer process. The total purchase is estimated at around $913.5 million.

Starbucks expects to have a controlling interest before the end of Q1 2015 and will consolidate Starbucks Japan into the company's results.

Japan, with more than 1,000 Starbucks stores, is the company's second-largest market in terms of retail store sales.

Starbucks Japan is a joint venture between Starbucks and Sazaby League, which operates Starbucks branded retail stores in Japan. The partnership was established in 1995.

"We would like to thank all of our partners in Japan who wear the green apron with pride and deliver the Starbucks Experience to our customers each and every day,"  John Culver, group president China/ Asia Pacific, Channel Development and Emerging Brandsin, said a company press release. "Their efforts have built an admired brand and delivered the strong financial results that have made Starbucks Japan a meaningful contributor to the growth and profitability in our China/Asia Pacific segment. We wish Sazaby the best and sincerely appreciate the operational excellence and leadership that they have contributed to Starbucks Japan's success and the solid foundation they have helped us build for the opportunities ahead."

Over the summer, Sazaby approached Starbucks about selling its Starbucks Japan ownership stake to the company and exiting the business in advance of the expiration of Starbucks Japan's retail franchise rights.