The global coffee giant announced on Sept. 22 that it would acquire the remaining 61% of its Japanese operations held by long-time partner Sazaby League for $913.5 million. On a conference call discussing the deal, Chief Operating Officer Troy Alstead stated, "We will be positioned to accelerate growth in a market that offers tremendous opportunity for us."
Must Read: 7 Stocks Warren Buffett Is Selling in 2014
Watch the video below to get Jim Cramer's take on Starbucks:
Starbucks had 1,051 stores in Japan as of June 29. The deal is expected to be accretive to earnings in fiscal year 2015, according to the company.
Starbucks, which my firm Belus Capital Advisors rates a buy, has been building its business in the U.S. through efforts like expansion of its menu with new drinks and food. With this deal the company is in a better position to replicate that focus in Japan, in addition to opening free-standing Teavana stores to tap into the strong appetite for brewed and packaged tea.
The potential for Starbucks' tea business in Japan is huge. Tea is the most commonly drunk beverage in Japan, according to Japan-Guide.com, and an important part of Japanese food culture.
Starbucks has joined a long list of consumer product behemoths, from Polo Ralph Lauren (RL) to Walmart (WMT) to Activision Blizzard (ATVI) , in exiting partnerships that allowed for quick expansion into new geographic markets or product categories.
Although full ownership of operations helps to tie a brand's messaging and logistics together globally, a consideration for investors is that there are near-term expenses that otherwise wouldn't have existed.
Here is a look at seven other similar transactions by big-name brands.