Bain Capital Acquires Bubble Tea Giant Gong Cha for $635 Million in Surprise Deal

Private equity firm Bain Capital has successfully completed the acquisition of the global bubble tea franchise, Gong Cha, a deal estimated to be worth around US$635 million. This figure falls significantly short of the $2 billion valuation that was initially sought by Gong Cha’s owner, TA Associates, earlier in the year.

Exploring Strategic Options

Speculation about the acquisition began circulating months ago, after it was revealed that TA Associates had engaged the services of JPMorgan Chase & Co. The global financial services firm was to explore strategic options for Gong Cha, which was founded in Taiwan, including the potential for a sale.

Initial discussions proposed that the business could be valued at approximately $2 billion. However, these talks were still in the preliminary stages and a transaction was far from guaranteed. During the sale process, TA Associates, the bubble tea chain’s owner since 2019, reportedly piqued the interest of several private equity firms, including Bain Capital and General Atlantic.

Global Bubble Tea Giant

Since its establishment in 2006, Gong Cha has evolved into one of the largest bubble tea franchises in the world. The brand currently operates more than 2,100 stores across over 30 markets. Its franchise model extends across the Asia-Pacific, North America, Europe, and the Middle East.

The acquisition is expected to finalize before the close of the current year.