Private equity firm Bain Capital has reportedly acquired global bubble tea chain Gong Cha for approximately US$635 million.

That figure is well below the $2 billion valuation sought by its owner, TA Associates, earlier this year, according to Nikkei Asia.

The deal follows months of speculation after Bloomberg reported that TA Associates had engaged JPMorgan Chase & Co to explore strategic options for the Taiwan-founded brand, including a potential sale. 

Sources at the time said the business could be valued at around $2 billion, although discussions were in their early stages and no transaction was certain.

TA Associates, which acquired Gong Cha in 2019, reportedly attracted interest from private equity firms including Bain Capital and General Atlantic during the sale process.

Founded in 2006, Gong Cha has grown into one of the world’s largest bubble tea franchisors, operating more than 2100 stores across more than 30 markets through a predominantly franchise model spanning Asia-Pacific, North America, Europe and the Middle East.

The transaction will reportedly close before the end of this year.