Taiwanese milk tea franchise Gong Cha Korea confirmed Monday that it is in the process of potentially acquiring its global headquarters Royal Tea Taiwan Co.
“Gong Cha Korea is currently in talks over potentially acquiring Royal Tea Taiwan Co.,” Gong Cha Korea spokesperson Hyun Ye-seul told The Korea Herald.
“However, the details of the acquisition have yet to be determined, as the negotiations are still underway and still open to changes,” she said.
If the deal goes through, Gong Cha Korea would become a global beverage company, operating some 1,100 outlets in 20 countries.
It would also join the likes of the MPK Group, which acquired the Japan-based Mr. Pizza headquarters in 2010 and Smoothie King Korea, which took over its U.S. headquarters in 2012.
Gong Cha Korea was established in 2012, after former CEO Kim Yeo-jin purchased the operational rights to Gong Cha -- originally founded in Taipei in 2006 -- from Royal Tea Taiwan Co.
Gong Cha Korea is currently owned by Japan-based private equity fund Unison Capital, which purchased a 70 percent majority stake in the firm in 2014. As of last year, Gong Cha Korea operated 362 outlets here and posted a net profit of 5.7 billion won ($4.96 million).
By Sohn Ji-young (email@example.com