Starbucks Corp. revealed on Tues. plans of acquiring the remaining 60.5 percent share of Starbucks Coffee Japan Ltd that it does not currently own in a $913.5 million deal.
Since 1995, Starbucks Japan and business partner Sazaby League have been managing the business.
Sazaby League reportedly offered to sell its ownership stake in Starbucks Japan to Starbucks Corp.
Japan is Starbucks Corp's second largest market in terms of generated revenues, with about 1,050 Starbucks cafes all over the country.
"Japan is a market we know well and care deeply about, with more than 25,000 partners serving millions of customers every week at more than 1,000 stores," as quoted by Howard Schultz, Chairman of Starbucks Coffee Company.
Amidst the economic struggles and deflation present in Japan, Starbucks Japan still remains on top of its game having one of the highest profit margins in the world, according to Starbucks executives.
Taking over Starbucks Japan will enable the company to expand the brand by building more stores and bolster their products in grocery stores and other outlets.
Currently Starbucks has a small share of canned coffee and ready-to-drink products in the country.
Sazaby League will be withdrawing its 39.5 stake of Starbucks Japan on Sept. 26.
It will reportedly cost Starbucks Corp. 965 yen per share, totalling 55 billion yen (approximately $505 million).
After the deal, Starbucks will own majority of its Japan unit, with 79 percent shares.
Starbucks will continue to acquire the rest of the 21 percent owned by public shareholders early 2015.
The company will make an offer of 1,465 yen per share, totalling 44.5 billion yen($408.5 million).
The offer of Starbucks Corp. is higher than 11.6 percent compared to the average price of Starbucks Japan's stock, and higher than 51.8 percent to the price Starbucks is paying for Sazaby's shares, according to Starbucks Corp.
