Bain Capital to Acquire Taiwanese Bubble Tea Chain Gong Cha for $635 Million

Bain Capital is set to acquire a controlling stake in the Taiwanese bubble tea giant Gong Cha for $635 million. The deal, struck with current stakeholders including TA Associates, is expected to be finalized by the end of 2024.

This acquisition marks a significant move for Bain Capital, which has a proven track record in the food and beverage sector, notably with its investment in Domino's Pizza Japan. Gong Cha aims to harness Bain Capital's strategic insights and digital marketing prowess to accelerate its expansion plans. Key target markets include Japan and South Korea, where the brand already enjoys a strong customer base, as well as a more aggressive push into the United States.

Founded in Kaohsiung, Taiwan, in 2006, Gong Cha has grown into a global phenomenon, renowned for its pearl milk tea. The company now boasts over 2,000 outlets across approximately 30 countries and regions, spanning Asia, the U.S., and Europe. The brand has seen several ownership changes, with Unison Capital managing its South Korean operations and global expansion from 2014, and TA Associates acquiring a stake in 2019.

Financially, Gong Cha reported a 6% revenue increase in 2024, reaching $188.8 million, with operating profit doubling to $23.7 million. Japan is projected to become its largest market by revenue this year. The global tea market itself is poised for substantial growth, with projections indicating an increase from $56.26 billion in 2025 to $73.78 billion by 2030, a rise of approximately 30%.

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Bain Capital has reached a final agreement with TA Associates and is expected to complete the transaction by the end of this year.