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Bain Capital strikes deal to buy Gong Cha bubble tea brand

The purchase includes plans to expand Gong Cha stores in Japan, South Korea and the United States, where the brand is already growing across multiple markets.

Reported · Written up by our desk · Trade & Tariffs

Fuelled by China’s bubble tea boom and intensifying competition, financial investors are increasingly backing major brands through full equity buyouts rather than early-stage bets or IPO subscriptions, according to SCMP Economy. Analysts expect China bubble tea industry growth to cool to mid to high single digits, down from the double-digit pace projected in prior years.

In the latest deal, Bain Capital said it reached an agreement on August 6 to buy Taiwan-founded bubble tea brand Gong Cha Global from US private equity firm TA Associates and other shareholders, SCMP Economy reported. Bain Capital said it would work with Gong Cha management and prioritize store expansion in Japan, South Korea and the United States.

Gong Cha operates almost 2,200 stores across 33 markets worldwide. The outlet said the brand is well established across the Asia-Pacific region, particularly in Japan, South Korea and Australia, and is also expanding in the Americas and Europe.

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