This article was displayed on the ChosunBiz MoneyMove (MM) site at 11:46 a.m. on May 15, 2026.
U.S.-based private equity firm TA Associates is selling Gong Cha, a milk tea franchise. It is moving to exit (recover its investment) about seven years after acquiring Gong Cha in 2019. However, with the number of Gong Cha stores decreasing every year and same-store sales growth in the negative (-), some say it will be hard to expect a high valuation.
According to the investment banking (IB) industry on the 15th, TA Associates recently selected JP Morgan as the lead manager to sell Gong Cha. JP Morgan is said to be sounding out interest from global private equity funds (PEF) and strategic investors (SI).
The sale target is the entire equity in Gong Cha Korea held by TA Associates. Earlier, TA Associates acquired Gong Cha Korea from UCK Partners for about 350 billion won in 2019. Although Gong Cha is a milk tea brand that started in Taiwan, after UCK Partners acquired Gong Cha Korea in 2014 and then additionally purchased a stake in the Taiwan headquarters Royalty Taiwan (RTT) in 2017, the Korean entity took on the role of the global headquarters. Since TA Associates' acquisition, the global Gong Cha Group business centered on Gong Cha Korea has been operated under a U.K.-based holding company structure.
Since the acquisition, TA Associates has focused on expanding Gong Cha's overseas business. It has grown into a global bubble tea brand by expanding stores in Korea, Japan, the United States, Europe and the Middle East. It was reported that a sale was attempted once in 2024, but the company directly denied it. The sale price mentioned at the time was in the 600 billion–700 billion won range.
The market is watching the possibility that global private equity funds will show interest in the bidding for Gong Cha. The bubble tea market continues to grow, centered on Asia, and recently its base has been widening among younger consumers in major markets in North America and Europe. As Gong Cha continues to enter new markets and expand stores based on a franchise model, its potential for top-line growth is cited as an investment attraction.
However, with Gong Cha's scale steadily shrinking, it is uncertain whether TA Associates will get the valuation it wants. According to the retail industry, Gong Cha's global store count fell from 898 in 2024 to 873 in early last year and 859 as of March this year.
The fact that same-store sales growth (SSSG) is in the negative (-) is also seen as a burden. For global franchise assets, not only the simple number of stores but also same-store sales growth and average unit volume (AUV) per store are evaluated as key indicators that determine valuation. A higher valuation can be recognized only when the sales efficiency of existing stores is confirmed along with top-line growth from new openings.