Bubble tea chain Gong Cha owner mulling over sale; business could be valued at $819m
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The chain currently operates more than 1,300 stores globally.
PHOTO: GONG CHA SINGAPORE/FACEBOOK
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HONG KONG (BLOOMBERG) - US private equity firm TA Associates is considering strategic options for its bubble tea chain Gong Cha, including a potential sale or an initial public offering (IPO), according to sources.
The buyout firm is working with Citigroup to identify the best course for Gong Cha, said the sources. The value of the business could be at least US$600 million (S$819 million), and a sale or an IPO could happen as soon as next year, they said.
The owner could also opt for a stake sale to a strategic partner to help the chain expand to new markets such as China, said one of the sources.
Deliberations are at an early stage, and details such as timing could change, they added. A representative for TA Associates did not respond to requests seeking comment and a Citigroup spokesman declined to comment.
Gong Cha, which refers to the act of offering tea as a tribute to the emperor in ancient China, was founded in Kaohsiung in southern Taiwan in 2006. Besides Taiwanese-style bubble tea, it also offers other speciality tea-based beverages.
The chain currently operates more than 1,300 outlets globally, including in Australia, Japan, Singapore, South Korea, Britain and the United States, according to TA Associates' website.
TA Associates acquired Gong Cha from Unison Capital in 2019 for an undisclosed amount.
