TA invests in Unison-backed Gong Cha - update
TA Associates has acquired a controlling stake in Gong Cha, the Taiwan-based bubble tea chain backed by Unison Capital.
TA said in a statement that its commitment is a “strategic growth investment,” without providing further details as to the size of its holding or financial terms of the transaction. The founders of Gong Cha Korea, which took over the global franchise by acquiring a controlling stake in the parent company in 2016, are investing alongside the US-based private equity firm.
It has not been confirmed whether Unison is making a full exit or will retain part of its stake, though Korean media reported earlier this year that TA was planning to buy 100% of Gong Cha, including Unison's holding of more than 70%, for around KRW350 billion ($289 million).
Unison acquired Gong Cha Korea in 2014, paying KRW34 billion for a 70% stake. The GP saw Gong Cha as a good way to tap into Korea’s domestic consumption story while also presenting opportunities for international expansion. It delivered on this thesis through the acquisition of the master franchising rights for Japan, and subsequently through buying the Taiwanese parent.
Gong Cha was founded in Taiwan in 2006 and has more than 1,000 locations in 17 countries, mainly operating through a franchise model in urban and suburban markets. Along with its signature bubble tea the company also offers a variety of seasonal and specialty tea-based drinks.
“With its scale, large capital base and global footprint, TA is an ideal partner for Gong Cha at this stage in our growth,” said Euiyeol Kim, CEO of Gong Cha. “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.”
TA reached a first and final close of its latest fund at $8.5 billion earlier this year. The firm backs growth companies with profitable business models across technology, healthcare, financial services, consumer, and businesses services, committing $75-500 million in equity per deal.
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