Jollibee Foods Corp. Acquires Coffee Bean & Tea Leaf
After acquiring Tim Ho Wan for $33.5 million and U.S.-based Mexican food concept Tortas Frontera for $12.4 million in 2018, Jollibee Foods Corporation is continuing its buying spree. Today, the thriving Filipino fast-food chain announced that it will be completely acquiring U.S. brand Coffee Bean & Tea Leaf through an initial investment of $100 million, Reuters reports. The major purchase was done in order to “boost its overseas sales.”
“The acquisition of the Coffee Bean & Tea Leaf brand will be JFC’s largest and most multinational so far with business presence in 27 countries,” JFC chairman Tony Tan Caktiong says in an official statement. “This will add 14% to its global system wide sales, 26% to its total store network, will bring international business’ contribution to 36% of worldwide sales and will bring JFC closer to its vision to be one of the top five restaurant companies in the world in terms of market capitalization.”
That said, Coffee Bean & Tea Leaf is set to be JFC’s second-largest business after the Jollibee fast-food chain.
“JFC’s $100 million investment will represent 80% of the equity of a holding company (CBTL will be consolidated into JFC’s financial statements immediately upon acquisition) with the balance of $250 million as advances to the new holding company,” the official statement further explains. “This holding company plans to issue within six to nine months preferred shares (on terms to be determined) for an aggregate consideration of at least $250 million, which will be used to repay JFC’s advances.”
Currently, Jollibee operates the largest fast-food chain in the Philippines with 3,195 restaurants and counting. It also runs 1,418 stores overseas across its vast portfolio of brands. The homegrown company was founded by Caktiong, who started it as an ice cream parlor in 1975 and eventually converted it into a fast-food restaurant. The first Jollibee restaurant was incorporated on January 11, 1978.
In the Philippines, JFC also owns Red Ribbon, Chowking, Greenwich, Manong Pepe's, Mang Inasal, and Tita Frita's Uling Uling. Internationally, JFC owns Chinese fast-food restaurant Yonghe King, American hamburger restaurant chain Smashburger in 2018, and Vietnamese coffee shop chain Highlands Coffee.