Starbucks Acquires Coffee Partners Hawaii

01/24/06

Starbucks Corp. announced Tuesday it has acquired full ownership of Coffee Partners Hawaii, its local joint venture company.

Starbucks Corp. announced Tuesday it has acquired full ownership of Coffee Partners Hawaii, its local joint venture company. As a result of the acquisition, Coffee Partners Hawaii becomes a wholly owned subsidiary of Starbucks (Nasdaq: SBUX), and the corporate equity interest increases from 5 percent to 100 percent.

As a result of the acquisition, Coffee Partners Hawaii becomes a wholly owned subsidiary of Starbucks (Nasdaq: SBUX), and the corporate equity interest increases from 5 percent to 100 percent.

The change is effective April 1, when Starbucks will assume direct operation of the Hawaii business.

"Our partners [employees] at Coffee Partners Hawaii have done a tremendous job at establishing Starbucks as one of the most respected and recognized brands in Hawaii," said Dean McPhail, CEO of Coffee Partners Hawaii. "We came to a mutually beneficial agreement on the acquisition of the Starbucks business so that we can refocus our efforts on the future development of our other Hawaii businesses."

Specific terms of the agreement were not disclosed.

The ownership group, Café Hawaii Partners, which operated the Starbucks stores through Coffee Partners Hawaii, also owns and operates Jamba Juice Hawaii and has plans to open P.F. Chang's China Bistro this summer.

Under the new ownership, joint venture partners Greg Meier, Dean McPhail and Scott McPhail will report to Buck Hendrix, president of Starbucks Latin America.

Proceeds from the sale will go toward real estate developments by The MacNaughton Group, Café Hawaii Partners' investment and development partner.

The first Starbucks opened at Kahala Mall in 1996. As of Jan. 1, 2006, there are 54 stores and 1,100 employees.

Starbucks Corp. has more than 10,500 retail locations in North America, Latin America, Europe, the Middle East and the Pacific Rim.

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