Bain Capital Acquires Gong Cha for $635 Million: Full Deal Breakdown and What Comes Next

Deal Structure and Competing Bidders

TA Associates, the global private equity firm that acquired Gong cha in 2019, acted as the seller alongside other minority shareholders . Bain Capital Private Equity, LP was the buyer .

During the sale process, two other private equity giants emerged as interested parties: General Atlantic and MBK Partners . However, South Korean regulatory pressure complicated MBK's participation, creating an opening for Bain to secure the deal . J.P. Morgan and NorthPoint acted as financial advisors to Gong cha, while Nomura Securities advised Bain .

Gong cha's History: From a Single Taiwan Tea Shop to a Global Chain

Gong cha's story begins in Taiwan. Founder Super Wu opened his first premium tea shop in 1996, experimenting with blends and pioneering a signature Milk Foam formula . The Gong cha brand was officially established in Kaohsiung, Taiwan, in 2006 by Zhen-Hua "Super" Wu and Ming-Hsi "Frank" Huang .

Key milestones in its global expansion:

• 2009: First store opened outside Taiwan, in Hong Kong .
• 2012: Entered South Korea, introduced by Australian entrepreneur Martin Berry and his wife, who pooled $2.5 million of their savings to open the first five franchise stores in Seoul .
• 2014: Gong cha entered the United States .
• 2017: Gong cha Korea (the South Korean master franchisee) reverse-acquired the global parent company, taking control of the brand's worldwide operations .
• 2019: TA Associates acquired Gong cha from its Korean owners .

Global Footprint and Business Model

As of the acquisition announcement, Gong cha operates approximately 2,200 locations across 33 international markets and serves more than 150 million beverages annually . Key regional breakdowns include:

• United States: ~289 locations across 21 states, operating under a master franchise model . Gong cha recently acquired 170 stores from its U.S. master franchisee to strengthen its American operations .
• Americas (total): ~350 locations including the U.S., Canada, and Mexico .
• Global sales: Surpassed $600 million as of 2025 .

The brand operates primarily as a franchise-based business . In most international markets, including the U.S., it uses a master franchise model. In March 2024, Gong cha launched a direct franchising program in the U.S. to enter new states including Hawaii, Arizona, Nevada, Illinois, and Tennessee . Gong cha has been ranked #1 in the Tea category on Entrepreneur Magazine's Franchise 500 List .

Expansion Plans Under Bain Capital

Bain Capital has stated it will work closely with Gong cha's management to accelerate global expansion, leveraging the firm's experience in the consumer and food & beverage sectors . The firm's existing F&B holdings include Domino's Pizza Japan and Fogo de Chao . Specific strategic priorities include:

• Speeding up international growth, particularly leveraging Bain's stability and presence in Northeast Asia .
• Expanding further into the U.S. market through the direct franchising program .
• South Korea remains an important market; Bain noted that regulatory pressure there made it difficult for rival bidder MBK to pursue the deal .

Broader Context: Private Equity and the Bubble Tea Sector

The bubble tea market has drawn increasing private equity interest, driven by strong growth. Market research estimates the global bubble tea market was valued at approximately $3.35 billion in 2025, growing at an 8.4% CAGR to $3.62 billion in 2026 . Other estimates place the 2025 figure at $2.72 billion, projecting growth to $4.72 billion by 2031 .

TA Associates' exit after roughly seven years reflects a typical private equity hold-and-expand cycle. The firm grew Gong cha significantly through international franchising. Notably, the sale process began at a hoped-for $2 billion valuation — implying a multiple of nearly 30 times core earnings — but closed at roughly $635 million, indicating a significant gap between seller aspirations and buyer appetite in the current consumer M&A environment . Gong cha's story also includes an earlier private equity owner: Japanese firm Unison Capital acquired the South Korean operation in 2014 before TA's involvement .