BCE's Starbucks Watch

Starbucks Buys Full Ownership in Puerto Rico and Hawaii Operations

SEATTLE, Jan 24, 2006-- Starbucks Corp. (SBUX) acquired full ownership of Coffee Partners Hawaii, the joint-venture company that operates its retail stores in Hawaii, and Cafe del Caribe, the joint-venture company that operates its retail stores in Puerto Rico. In a press release Tuesday, the coffee retailer said the terms of the asset purchases are not being disclosed. Starbucks had owned a 5% stake in both companies. As of Jan. 1, there were 54 stores with about 1,100 employees in Hawaii, as well as 13 stores with about 300 employees in Puerto Rico. "We expect the combined acquisitions to be modestly accretive to earnings per share, consistent with our fiscal year 2006 operating plans," a representative from Starbucks said.