Key Takeaways
- • TA Associates has mandated JPMorgan Chase to run a sale process for bubble tea operator Gong Cha, with preliminary valuation expectations reaching $2 billion, according to Reuters sources.
- • Gong Cha generated over $70 million in annual EBITDA and $217 million in revenue last year with 14% year-on-year growth, operating approximately 2,200 outlets across 32 markets globally.
- • Prospective bidders include Bain Capital and General Atlantic, among other financial sponsors seeking exposure to the fast-growing global beverage franchise sector.
- • Binding bids are expected by mid-June 2026, with valuations potentially anchoring lower than the preliminary 30x earnings multiple given current market conditions.
- • TA Associates acquired its stake in Gong Cha in 2019 and has overseen a period of international scaling and franchise consolidation, including expansion into five new markets and US coast-to-coast franchise acquisitions during the past year.
Summary
TA Associates is exploring the sale of Gong Cha, a Taiwanese bubble tea operator that has grown into one of the world's largest beverage franchises. The Boston-based private equity firm has engaged JPMorgan Chase to manage a competitive auction process, with preliminary indications suggesting a valuation of approximately $2 billion, according to sources familiar with the matter cited by Reuters. The sale represents TA Associates' potential exit from an asset acquired in 2019, following a period of significant international expansion and operational scaling.
Gong Cha's financial performance demonstrates the underlying strength of the business. The company reported $217 million in revenue for the prior year, representing 14% year-on-year growth, supported by strong performance in Japan and South Korea. The business generates more than $70 million in annual EBITDA, translating to a preliminary valuation multiple of approximately 30x earnings at the upper end of expectations. However, sources note that actual binding bids are likely to reflect lower multiples given prevailing market conditions affecting valuation assumptions across the alternative investment landscape.
The global footprint of Gong Cha reflects substantial scaling achievements since TA Associates' investment. The company operates roughly 2,200 outlets across 32 markets spanning Asia, North America, Europe, and the Middle East. During the past year alone, Gong Cha entered five new markets—Thailand, Colombia, Ecuador, and others—while expanding its US presence through acquisitions of master franchise rights on both coasts. This mix of franchised and company-owned stores has enabled capital-efficient growth typical of successful beverage franchise models.
The competitive bidding process is expected to attract multiple financial sponsors. Confirmed participants include Bain Capital and General Atlantic, both of which are actively evaluating exposure to the fast-growing global beverage franchise sector. Binding bids are anticipated by mid-June 2026. TA Associates, Gong Cha, Bain Capital, General Atlantic, and JPMorgan Chase declined to comment on the process.
Gong Cha's financial performance demonstrates the underlying strength of the business. The company reported $217 million in revenue for the prior year, representing 14% year-on-year growth, supported by strong performance in Japan and South Korea. The business generates more than $70 million in annual EBITDA, translating to a preliminary valuation multiple of approximately 30x earnings at the upper end of expectations. However, sources note that actual binding bids are likely to reflect lower multiples given prevailing market conditions affecting valuation assumptions across the alternative investment landscape.
The global footprint of Gong Cha reflects substantial scaling achievements since TA Associates' investment. The company operates roughly 2,200 outlets across 32 markets spanning Asia, North America, Europe, and the Middle East. During the past year alone, Gong Cha entered five new markets—Thailand, Colombia, Ecuador, and others—while expanding its US presence through acquisitions of master franchise rights on both coasts. This mix of franchised and company-owned stores has enabled capital-efficient growth typical of successful beverage franchise models.
The competitive bidding process is expected to attract multiple financial sponsors. Confirmed participants include Bain Capital and General Atlantic, both of which are actively evaluating exposure to the fast-growing global beverage franchise sector. Binding bids are anticipated by mid-June 2026. TA Associates, Gong Cha, Bain Capital, General Atlantic, and JPMorgan Chase declined to comment on the process.
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