Starbucks Sold China Control to Bidder Pledging Stability

Starbucks Corp. decided to sell a majority stake of its struggling China unit to Boyu Capital after the Chinese private equity firm convinced the coffee chain it could grow the business with its existing management team, according to people familiar with the process.

Boyu outgunned rival bidders for Starbucks’ second largest business in large part by playing up its familiarity with the giant Chinese market and a commitment to stick with managers who were eager to see continuity in its turnaround plan, said the people, who weren’t authorized to speak publicly on the matter.

After bursting into Beijing in 1999 ...