Unilever North America has entered an agreement with US-based coffee company Starbucks to acquire its specialty tea brand TAZO for $384m.

As per the deal, Unilever will be acquiring the TAZO brand and all related intellectual property, signature recipes, and inventory from Starbucks.

Completion of the transaction is subject to regulatory approval and is expected to close in Q4, 2017.

Established in 1994, TAZO offers a wide range of beverage products, including specialty black, green, and herbal teas, as well as chai lattes.

Unilever North America president Kees Kruythoff said: “With its strong appeal to millennials, TAZO is a perfect strategic fit for our US portfolio that includes exciting new brands such as Seventh Generation, Dollar Shave Club, and Sir Kensington’s.

“TAZO offers a wide range of beverage products, including specialty black, green, and herbal teas, as well as chai lattes.”

“TAZO’s solid position in the fast-growing specialty tea segment, coupled with Unilever’s tea expertise, presents a fantastic growth opportunity.”

TAZO is currently available across groceries and convenience stores in the US, as well as in Canada. It is available in formats including packaged teas, K-Cup pods, and bottled ready-to-drink (RTD) teas.

Unilever Refreshment president Kevin Havelock said: “TAZO represents another strategic addition, which strengthens our tea portfolio towards high-growth segments.

“Its artfully crafted specialty teas perfectly complement our global tea business, which includes Lipton, Pure Leaf, PG Tips, T2, and our recent addition, Pukka.”