Jollibee Foods Corporation (JFC) officially buys out ₱18-billion American brand Coffee Bean & Tea Leaf and called it as its own.
As announced by Jollibee last Tuesday, September 24, the company has completed its acquisition plan for the global coffee chain that is based in Los Angeles, California. The merger has cleared its government approvals and already fulfilled its closing conditions.
For a price tag of $ 350,000,000 (equivalent to ₱18.3 billion), JFC acquired Coffee Bean with an agreement that the fast-food company will not be taking any debts to go with the deal. The exciting purchase is financed through bridge loans that are secured by Jollibee Worldwide Pte Ltd.
For the record, American brand Coffee Bean, owned by International Coffee & Tea, LLC operates 1,180 outlets across 27 countries wherein 150 outlets were located in the Philippines.
Coffee Bean would be the second-largest business in the JFC group after Jollibee. The company suffered a $21.04-million loss in 2018, after 2017’s $26.75-million loss. Buying out Coffee Bean would sweeten JFC’s café business segment, with its share to total sales seen rising to 14%.
Other brands under JFC are Greenwich, Mang Inasal, Red Ribbon, Burger King, and Chowking in the Philippine market. JFC also previously acquired global brands such as Hard Rock Cafe, Smashburger, as well as Pho 24.
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