Bain Capital Acquires Tea Brand Gong cha

Bain Capital Private Equity will acquire Gong cha, a U.K.-based global tea brand with nearly 2,200 locations in 33 markets, from TA Associates.

TA invested in Gong cha in 2019. During the partnership, the brand launched multiple initiatives, including its global expansion strategy; completion of mergers and acquisitions, such as its U.S. East and West Coast master franchisee rights; and the rollout of Gong cha’s 2.0 digital kitchen, which is now live in 250 stores.

“TA’s investment has been instrumental in supporting our global expansion and the continued development of our business model,” says Paul Reynish, global CEO of Gong cha, in the release. “As we begin this next chapter with Bain Capital, we look forward to building on this momentum and bringing more high-quality whole leaf tea to consumers around the world.”

Naofumi Nishi, a partner at Bain Capital, adds, “(Gong cha’s) management team’s disciplined approach to store expansion has created a strong platform with significant room to grow across Asia Pacific, including in Japan, and the Americas. We look forward to partnering with the team to support the next phase of the group’s growth and continuing to develop its operations and marketing, which has been fundamental to its success to date.”

Terms of the deal weren’t disclosed. The deal is expected to close in Q4/26.

In July, Gong cha announced it signed a 50-unit exclusive area development agreement in Texas. The deal marked the largest direct franchising deal in Gong cha’s history.