Super Lawyers
The top Attorneys in Virginia and
the Washington, D.C. metropolitan
area, only 5% of the attorneys
in the state are named in SuperLawyers
ATA NBTA | The National Board of Trial Advocacy Association of Trial Lawyers of America Virginia Trial Lawyers Association National Asociation of Distinguished Counsel | Nation's Top One Percent | NADC

Starbucks to pay $626 million to acquire Teavana

For many of us here in Fairfax, "Starbucks" is synonymous with "coffee." But for its part, Starbucks is setting its sights higher. To wit, it recently made its largest-ever acquisition by agreeing to pay $626 million for Teavana.

Teavana, which was founded in Atlanta in 1997, makes prepared tea and sells premium loose-leaf teas and tea equipment, like teapots and teacups. It sells its products through other retailers but also has storefronts in what Starbucks considers to be valuable markets.

This acquisition will help Starbucks gain more traction in the retail world and will likely help it penetrate markets in India and China, where customers prefer tea to coffee.

Over the past few years, Starbucks has made several acquisitions to gain footholds in the markets for pastries, bottled beverages and convenience items. It has also made a bid for customers outside of its stores with products like instant coffee and bagged coffee, which can be purchased at grocery stores and discount retailers like Target. Tellingly, it changed its name from "Starbucks Coffee" to just "Starbucks" last year.

The acquisition of Teavana is expected to be complete by the first quarter of next year.

As this goes to show, acquisitions and mergers can often help companies expand into new markets or take their businesses in new directions. Because of this, they're often very important affairs that must be handled carefully and thoroughly. Mergers and acquisitions are too important to be treated hastily or without care.

Source: The San Francisco Chronicle, "Starbucks Teavan Deal Shows Why It Isn't All About Coffee: Retail," Nov. 15, 2012

No Comments

Leave a comment
Comment Information

DISCLAIMER: This website is designed to provide only general information; nothing contained herein constitutes legal advice nor is it an offer of legal representation. Use of this website is not intended in any way to create or convey the impression that such use of the website by any person, organization, or entity of any nature and/or kind constitutes any attorney-client relationship whatsoever and any information provided in this website shall not constitute legal advice. The use of any electronic communication available through this website with the Law Office of Richard L. Downey or any person associated with this website shall not constitute attorney-client relationship nor will any communication received by the Law Office of Richard L. Downey constitute an attorney-client communication. The Law Office of Richard L. Downey cannot make any guarantees as to the accuracy or currency of any information contained in or created in this website or the use of any link to another website contained in this website. The information that you obtain at this website is not, nor is it intended to be legal advice. You should consult a lawyer for individual advice concerning your own particular situation.

*The National Board of Trial Advocacy is accredited by the American Bar Association. Currently there is no procedure in the Commonwealth of Virginia for approving certifying organizations.