Bain Capital to acquire Gong cha for $635 million
The investment firm will acquire the bubble tea chain in a deal valued at more than $635 million, with plans to expand its footprint in Korea, Japan and the United States.
Gong cha beverages are seen in this promotional photo.
GONG CHA
Bain Capital, a global private investment firm, said it is acquiring Gong cha Global, a popular tea brand, from TA Associates, a Boston-based private equity firm, and the company’s other shareholders.
Bain Capital did not disclose financial terms for the transaction, but according to a report from Nikkei Asia, the company is acquiring the bubble tea brand for more than $635 million. The transaction is expected to close in the fourth quarter.
Following the acquisition, Bain Capital plans to continue expanding Gong cha's stores in Korea and Japan, where the brand has a wide customer base, while accelerating its growth in the United States. The company said it will also focus on deepening customer engagement through product innovation, digital marketing and loyalty initiatives.
“We are grateful to TA for its partnership and shared commitment to Gong cha’s long-term success,” said Paul Reynish, global CEO of Gong cha. “TA’s investment has been instrumental in supporting our global expansion and the continued development of our business model. As we begin this next chapter with Bain Capital, we look forward to building on this momentum and bringing more high-quality whole leaf tea to consumers around the world.”
Founded in Taiwan in 2006 and now headquartered in Britain, Gong cha gained prominence for its bubble tea. The company operates more than 2,000 stores in approximately 30 countries and regions.
In 2014, Seoul-based private equity firm UCK Partners acquired a 65 percent stake in the company’s Korean operation for 35 billion won ($24.48 million), before taking over the company’s global headquarters, Royal Tea Taiwan, in 2017. UCK exited the investment in 2019 by selling the business to TA Associates.
Bain has a record of investing in restaurant chains, including Domino’s Pizza Japan and Skylark.
BY JIN MIN-JI [[email protected]]
