Global private equity fund (PEF) manager Bain Capital will acquire milk tea franchise Gong cha.
According to the investment banking (IB) industry on the 6th, Bain Capital said on the 5th (local time) that it agreed to acquire the management control equity in Gong cha held by U.S.-based PEF manager TA Associates and other shareholders.
Specific terms were not disclosed, but the transaction amount is reportedly about $635 million, roughly 900 billion won. J.P. Morgan and North Point served as sell-side advisors.
Gong cha is a milk tea franchise that began in 2006 in Kaohsiung, Taiwan. In 2014, domestic PEF manager UCK Partners acquired Gong cha Korea and rapidly expanded the business in Korea.
UCK Partners later acquired the Taiwan headquarters in 2017 and steadily scaled up, then sold to TA Associates for 350 billion won in 2019, recording what was called a blockbuster exit.
Bain Capital's acquisition of Gong cha was led by its Japan team. It reportedly decided to acquire the company after positively assessing Gong cha's business stability and overseas scalability, with more than 2,200 stores in 33 countries.
Early in the sale process, MBK Partners and Q Capital Partners were mentioned as potential buyers, but they are said to have halted their reviews after facing difficulties in price negotiations with TA Associates.
Meanwhile, Bain Capital is regarded as a global PEF manager strong in consumer goods and food and beverage (F&B) investments. It has invested in Domino's Pizza Japan and Skylark, Japan's largest dining brand group.