Starbucks nets full ownership of Hawaii, Puerto Rico j.v.s
January 25, 2006
by FoodBusinessNews.net Staff
SEATTLE — Starbucks Corp. has acquired full ownership of Coffee Partners Hawaii, the joint venture company that operates its retail stores in Hawaii, and Cafe del Caribe, the joint venture company that operates its retail stores in Puerto Rico. Financial terms of the acquisitions were not disclosed.
Starbucks had owned a 5% interest in both companies, which now will be operated as wholly-owned subsidiaries. As of Jan. 1, there were 54 stores with approximately 1,100 employees in Hawaii and 13 stores with approximately 300 employees in Puerto Rico.
"Starbucks is very excited about these acquisitions, which we believe will allow us to achieve greater operational efficiencies and accelerate our expansion in both markets," said Martin Coles, president, Starbucks Coffee International. "Additionally, these transactions allow Starbucks and all our partners to be more integrated into the communities within Hawaii and Puerto Rico by building on our strong human connections in those markets."
Starbucks has been a part of the communities in Hawaii since Coffee Partners Hawaii opened the first Starbucks location in Oahu in 1996. Following its success in Hawaii, Starbucks and its Hawaii partners expanded the relationship to include Puerto Rico, opening the first store in San Juan in 2002.
"The acquisitions of these two markets are consistent with our strategy of acquiring increased equity ownership in our international markets where appropriate," said Michael Casey, chief financial officer, Starbucks Coffee Co. "We expect the combined acquisitions to be modestly accretive to earnings per share, consistent with our fiscal year 2006 operating plans."