Golden Gate spends $10.5 million to acquire The Coffee House

April 01, 2025 | 17:41

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Golden Gate has spent VND270 billion ($10.5 million) to acquire 99.98 per cent of the company that owns The Coffee House chain.

Golden Gate spends $10.5 million to acquire The Coffee House

Golden Gate's 2024 audited financial report revealed that on January 8, Golden Gate completed the purchase of 99.98 per cent capital of VN Tea and Coffee Service Trading JSC, the owner of The Coffee House chain, totalling VND 270 billion ($10.5 million). At the end of 2024, Golden Gate made a deposit worth VND54 billion ($2.1 million) for this deal.

Following the acquisition, VN Tea and Coffee Service Trading JSC has become a subsidiary of Golden Gate. Tran Viet Trung, chairman of the Board of Directors at Golden Gate, has also become general director of VN Tea and Coffee Service Trading JSC.

The Coffee House was valued at more than $50 million, according to ASCO Auditing and Valuation Company Ltd. in April 2021. After four years, this tea and coffee chain has been acquired for only one-fourth of this valuation.

In August 2014, The Coffee House coffee chain was officially launched by Nguyen Hai Ninh and continuously impressed with its rapid development. Nikkei Asian Review hailed The Coffee House as the fastest-growing coffee startup in Vietnam in 2018. According to Statista, as of the end of 2022, the chain ranked second in terms of store numbers, boasting 150 nationwide.

However, Ninh left The Coffee House in 2021. Despite many changes in leadership and efforts to innovate and restructure, The Coffee House did not report a profit from 2019-2023.

According to Vietdata, The Coffee House's revenue experienced fluctuations from 2021 to 2023. In 2022, the chain's revenue surged 67 per cent from the previous year. However, the chain saw its revenue shrink by 11 per cent to VND700 billion ($27.5 million) in 2023.

In 2024, The Coffee House closed more than 30 outlets in many major cities such as Can Tho, Danang, Haiphong, Hanoi, and Ho Chi Minh City. The chain now has 93 outlets nationwide.

According to the audited financial report, Golden Gate posted a revenue of VND6.6 trillion ($257.4 million) in 2024, up 5.5 per cent on-year. However, after-tax profit decreased by 28 per cent to more than VND100 billion ($3.89 million). It was the second consecutive year that the company reported a decrease in profit.