Today, Starbucks (SBUX.US) announced a strategic cooperation with Boyu Investment, an alternative asset management company , to establish a joint venture. Boyu will hold up to 60% of the equity and Starbucks will retain 40% of the equity to jointly operate Starbucks’ retail business in the Chinese market.

Judging from the specific details of the sale, Boyu will hold up to 60% of the equity in the joint venture, and Starbucks will retain 40% of the equity. It will continue to be the owner and licensor of the Starbucks brand and intellectual property rights, licensing the newly established joint venture. Boyu will receive its corresponding equity based on an enterprise value of approximately US$4 billion (excluding cash and debt).

Starbucks estimates that the total value of its China retail business will exceed US$13 billion, including: the transfer of the joint venture’s controlling interest to Boyu, the value of Starbucks’ retained equity in the joint venture, and the continued payment of licensing operating income to Starbucks over the next ten years or more.

Founded in 2011, Boyu Investment is an alternative asset management company located in the Chinese market and with a global presence. According to its official website, its investment portfolio includes more than 200 companies, including Alibaba Group, Meituan-Dianping and Langjiu. This year, Boyu Investment also invested in SKP, the “King of Stores” that once set the world’s highest sales volume.

Currently, Starbucks manages and operates 8,000 stores in the Chinese market. The newly established joint venture will continue to be based in Shanghai and its new goal is 20,000 stores.

Starbucks has been in the Chinese market for 26 years. The sale said it will be combined with Boyu’s understanding of Chinese consumers. The two parties will jointly accelerate beverage and digital innovation and expand new urban and regional markets.

Brian Niccol, chairman and CEO of Starbucks Coffee Company, said: Boyu’s experience and expertise in the local market will effectively accelerate Starbucks’ expansion in the Chinese market, especially in small and medium-sized cities and emerging regions.

Boyu Investment Partner Huang Yuzheng said: Over the past 26 years, Starbucks has successfully created a benchmark high-end brand image in China and established an emotional connection with Chinese customers. We not only recognize the enduring vitality of this brand, but also see huge opportunities to bring more innovative and localized experiences to Chinese customers.