Starbucks Corporation will acquire the remaining 60.5 percent share of Starbucks Coffee Japan Ltd. (Starbucks Japan) that the company currently does not own through a two-step tender offer process.
The move would allow Starbucks to hasten growth across multiple channels in the country, including new store concepts such as Teayang.
Starbucks Japan is a joint venture between Starbucks and Sazaby League that operates Starbucks branded retail stores in Japan since 1995. Together they introduced the coffeehouse experience to Japanese customers and built one of Starbucks top-performing markets globally.
"Full ownership of Starbucks Japan enables us to build on the amazing foundation of customer trust and loyalty our partners have achieved by continuing to take care of our people, delivering the highest quality coffee and innovating in product, store design and the digital experience," said Howard Schultz, chairman, president and CEO of Starbucks Coffee Company.
Starbucks credits Sazaby with establishing and growing Starbucks Japan’s healthy business. It said the next chapter in Starbucks Japan’s evolution will focus on existing infrastructure, systems and expertise to continue disciplined retail growth and expanded presence in other channels.
“It has been an honor for Sazaby to be part of the Starbucks family for nearly two decades,” said Masatoku Mori, President and Representative Director, Sazaby. “We are deeply grateful for the opportunity we have had to introduce the Starbucks Experience and the world’s best coffee to Japan. We have full confidence that Starbucks will continue to care for our dedicated partners, loyal customers and neighboring communities with the same personalized attention and respect they’ve provided since opening our first Starbucks store in 1996.”
The first step in the two-step tender offer process will commence on 26 September, with purchase price for Sazaby’s 39.5 percent stake set at JPY965 (USD) per share, for a total of JPY55 billion (USD505 million). Upon final settlement of this first tender offer step, which is anticipated to occur during the middle of Starbucks first quarter of fiscal 2015, Starbucks will own a controlling 79 percent interest in Starbucks Japan.
Shortly after the settlement of the first step in the tender offer and following the release of Starbucks Japan’s second quarter earnings results, Starbucks will initiate the second step for the remaining 21 percent ownership interest held by public shareholders and option holders of Starbucks Japan’s common stock. The tender offer purchase price is JPY1,465 (USD) per share, for a total of JPY44.5 billion (USD408.5 million).