Global bubble tea chain Gong Cha has emerged as one of the hottest consumer brand deals in Asia, with private equity firms including Bain Capital and General Atlantic reportedly evaluating bids for the company in a sale process that could value the business at around $2 billion.
The transaction is being led by current owner TA Associates, which has appointed JPMorgan to oversee the process, with binding bids expected by mid-June.
Founded in Taiwan in 2006, Gong Cha has grown into one of the world’s largest tea-focused quick-service brands, operating nearly 2,200 stores across 32 markets through a combination of franchised and company-operated outlets. The brand serves milk teas, fruit teas and specialty cold beverages, with a strong footprint across Asia, North America, Europe and the Middle East.
According to news sources, Gong Cha generates more than $70 million in annual EBITDA, meaning a $2 billion valuation would represent a multiple of nearly 30 times earnings. However, potential buyers are reportedly seeking a lower valuation multiple amid ongoing negotiations.
The company has continued to post strong growth globally. Group revenue increased 14% to approximately $217 million last year, driven by strong performances in Japan and South Korea. Gong Cha also expanded into five new markets during the year, including Thailand, Colombia and Ecuador.
As part of its broader international growth strategy, the brand also strengthened its position in the United States through strategic acquisitions of master franchise operations on both the East and West Coasts. TA Associates, which invested in Gong Cha in 2019, has helped accelerate the chain’s global expansion and operational modernization efforts over the past several years.
Neither TA Associates nor Gong Cha commented publicly on the sale process, while Bain Capital, General Atlantic and JPMorgan also declined to comment on the reports.
