MANILA, Philippines – Jollibee Foods Corporation subsidiary Jollibee Worldwide is investing $350 million (P17.9 billion) to fully acquire United States-based The Coffee Bean and Tea Leaf.
Jollibee disclosed on Wednesday, July 24, that it entered into an agreement to invest an initial $100 million (P5.1 billion) in a new Singapore-based company which will handle the purchase.
But the total consideration for the acquisition is a whopping $350 million.
The acquisition of Coffee Bean, which is present in 27 countries, will be Jollibee’s largest multinational venture so far.
“This will add 14% to [Jollibee’s] global system wide sales, 26% to its total store network, will bring international business’ contribution to 36% of worldwide sales, and will bring [Jollibee] closer to its vision to be one of the top 5 restaurant companies in the world in terms of market capitalization,” Jollibee chairman Tony Tan Caktiong said in a statement.
Jollibee is no stranger to the coffee business, as it has popular Vietnam-based Highlands Coffee in its portfolio.
The company said its coffee business will account for 14% of its worldwide system sales, making it the 2nd largest business just behind its core restaurant chain business.
“Our priority is to accelerate the growth of The Coffee Bean and Tea Leaf brand particularly in Asia, by strengthening its brand development, marketing, and franchise support system,” Tan said. – Rappler.com
P51.21 = $1