Starbucks Corp is considering divesting a majority stake in its Japan business, which operates 1,883 stores and represents nearly 9% of its global presence. The potential valuation of this stake is approximately $3 billion, although the exact size of the stake to be sold remains undetermined.
This move aligns with CEO Brian Niccol's strategy to streamline operations and enhance profitability, particularly in the U.S. market, where the company has faced challenges. Starbucks Japan has shown strong performance, contributing to a 5.7% growth in comparable store sales in the international segment during the third quarter.
The company previously took full control of its Japan operations in 2014 for about $914 million and has since expanded its footprint significantly. The sale is expected to attract interest from various global and local buyout firms, with a formal process potentially starting in the fourth quarter.
This follows Starbucks' recent divestiture of its China operations, which was valued at $4 billion, indicating a broader strategy of asset sales in response to competitive pressures and market dynamics