Grupo Vips, which has partnered with Starbucks since 2001, has regained total control of the companies’ joint venture in Spain after buying out the Seattle company’s 49 percent stake.
Starbucks’ Spanish partner has regained total control of the companies’ joint venture in Spain after buying out the Seattle company’s 49 percent stake.
Grupo Vips, which has partnered with Starbucks since 2001, had sold off a 49 percent stake to Starbucks in 2013 as it dealt with financial difficulties and sought a cash infusion that would help it undertake an overhaul of several business ventures.
Now the Spanish company’s “financial health has made it possible to once again control 100 percent of Starbucks Spain equity, a brand for which we have major future development plans,” Enrique Francia, the CEO of Grupo Vips, said in a statement.
The amount of the deal was undisclosed, although Spanish newspaper El Pais reports that Grupo Vips obtained a $75 million loan that it will devote in part to the Starbucks buyout.
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Both companies have also extended their licensing agreement, due to expire in 2021, to 2030.
Grupo Vips operates 90 stores in Spain. The move comes as the European country emerges from several years of economic crisis, although unemployment remains high and uncertainty due to political polarization and Catalan separatism has flared in recent months.