Gong Cha secures investment from private equity firm TA Associates
The transaction is expected to close in early October.
Gong Cha Group has secured an investment from private equity firm TA Associates to bolster its global expansion.
The move will see TA have an undisclosed stake in the Taiwanese-style bubble tea chain.
The founders of Gong Cha Korea will participate in the capital raising.
Financial terms of the transaction is expected to close in early October.
Currently, there are more than 1,000 Gong Cha stores in 17 countries globally, including Korea, Japan, Taiwan, the Philippines, Malaysia, Mexico, Australia, Canada, the United Kingdom and the United States.
“We will work closely with management in supporting the company’s franchise partners to further Gong Cha’s strong business model. We are looking forward to this partnership and helping to grow the Gong Cha brand in new and existing markets,” said Edward Sippel, a Managing Director at TA Associates and co-head of Asia operations of TA Associates Asia Pacific Ltd.
“With its scale, large capital base and global footprint, TA is an ideal partner for Gong Cha at this stage in our growth. TA offers the truly deep global resources and experience that will help us further strengthen our market position and allow us to even more effectively build our leading global tea brand,” Gong Cha Group CEO Euiyeol Kim added.
Peter Rodwell, incoming Executive Chairman of Gong Cha, says the brand’s success is a result of the management team’s “persistent customer-centric focus on quality, innovation and service.”
“I am confident that with TA’s long history of building value in growing businesses, we are poised to bring Gong Cha’s quality tea products to many more consumers around the world,” he added.
TA Associates managing director Michael Berk explained that the global tea market has enjoyed steady growth over the past several years, with milk tea remaining a staple beverage across Asia and around the world.
“Globally, the tea market is estimated to be larger than that of coffee, with continued expected growth. Given these market dynamics, we believe that Gong Cha is very well-positioned to further expand the company’s presence and brand throughout the world,” he said.
