Multiple bidders value Starbucks China at up to $5 billion, making it one of the most valuable divestments in recent years. Bids set the value at about 10 times the expected 2025 EBITDA of $400-500 million, with one bidder offering a higher multiple. Starbucks faces competition from Luckin Coffee in China. Starbucks has not yet decided how large a stake it will sell, maintaining a meaningful presence. Starbucks’ market share in China declined from 34% in 2019 to 14% in 2020. Comparable-store sales in China increased by 2% in the most recent quarter. Interested parties in the sale process include private equity firms Carlyle, EQT, Hillhouse Investment, and Primavera Capital, as well as Bain Capital, KKR & Co, and Tencent. The next steps in the sale process are unclear, typically involving a smaller group of bidders for final binding offers.

Read more at Yahoo Finance: Exclusive-Starbucks China valued at about $5 billion by bidders, sources say