It’s trying to support its Yonghe King business’ growth.
Jollibee Foods Corporation (JFC) is doling out US$10.4m for a 30% stake in Happy Bee Foods Processing Pte. Ltd. (Happy Bee).
According to the Philippine fast food giant’s news release, JFC struck the deal through its subsidiary, Jollibee Worldwide Pte Ltd (JWPL) with Hua Xia Harvest Holdings Pte. Ltd. (Hua Xia). With this acquisition, JPWL will own 100% of the joint venture entity Happy Bee.
Happy Bee owns 100% of the equity interests in Happy Bee Foods Processing (Anhui) Co., Ltd (Happy Bee Anhui), a foreign-owned enterprise incorporated in China. Happy Bee Anhui runs a manufacturing facility in Anhui that currently services JFC’s Yonghe King business, as well as produces and sells food products for business institutions other than JFC’s brands.
Under the deal, Hua Xia will sell its 30% stake to JWPL, while Happy Bee will sell assets and contracts related to the third party supply business to Hua Xia.
The US$10.4m will come in the form of assets related to the production of food products intended for institutions outside of JFC brands in China. JFC will not have a net cash outlay for the stake acquisition.
JFC further reports that the deal is driven by JFC’s intentions of focusing on supporting its Yonghe King business’ growth, further improving food quality and boosting assurance on food safety.
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