Starbucks Corporation To Buy Out Japan Joint Venture Partner For $913.5 Million

Starbucks Corporation SBUX will buy a 60.5 percent share of its Japan joint venture unit for about $913.5 million, the company said Tuesday.

The unit, called Starbucks Coffee Japan Ltd., includes about 1,000 locations and will be consolidated into Starbucks' financial results before the end of the first fiscal quarter.

Starbucks said the deal will boost 2015 profits slightly, excluding acquisition-related items that it didn't estimate. As of June 29, Starbucks had 20,863 stores in 64 countries.

Starbucks Japan is a joint venture between Starbucks and Sazaby League launched in 1995 to operate Starbucks-branded retail stores in Japan.

Sazaby will sell its 39.5 percent stake for $505 million in a tender offer starting September 26, and Starbucks will then acquire the 21 percent stake held by public shareholders in a tender offer for $408.5 million.

Before news of the Japan deal, Starbucks closed Tuesday down nearly 1 percent at $73.96 a share.