Mubadala-backed Zamp to buy Starbucks brand rights, stores in Brazil

SAO PAULO (Reuters) – Brazilian restaurant chain operator Zamp has agreed to buy the rights to operate the Starbucks (NASDAQ:) brand in the South American country, as well as some stores, for 120 million reais ($22.7 million), it said on Thursday.

In a securities filing, Zamp said that the deal was signed with SouthRock, the company that currently owns these rights and assets in Brazil and has been in bankruptcy protection since last year.

Zamp, which is controlled by Abu Dhabi state investor Mubadala, operates Burger King and Popeyes restaurants in Brazil, and had disclosed in February it was in talks to buy the Starbucks brand in the country.

It is not yet known exactly how many of the more than 100 Starbucks stores in the country Zamp would buy, the company added.

As required by SouthRock’s bankruptcy proceedings, the deal would be implemented through a competitive process, in which Zamp would have the right to match potentially higher bids, according to the filing.

Zamp said the deal requires approval from Brazil’s antitrust watchdog CADE and the court overseeing SouthRock’s bankruptcy.

It also needs a final agreement with Starbucks, which has so far reached an initial deal authorizing Zamp to explore the brand and develop operations of the coffee shop chain in Latin America’s largest economy.

($1 = 5.2991 reais)