Jollibee completes acquisition of The Coffee Bean and Tea Leaf
The coffee chain is now their second largest business.
Jollibee Foods Corporation (JFC) is now the 100% owner of U.S.-based The Coffee Bean & Tea Leaf, the fast food conglomerate’s largest acquisition to date.
In an announcement to the Philippine Stock Exchange, the move is expected to add 14% to JFC’s global system wide sales, 26% to its total store network, and will bring international business’ contribution to 36% of worldwide sales, bringing them closer to its vision to be one of the top five restaurant companies in the world in terms of market capitalization.
Coffee Bean is now JFC’s second largest business after its namesake chicken brand. Combined with Highlands Coffee, with business mostly in Vietnam, JFC says the acquisition will enable them to “become an important player” in the growing coffee market.
“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,” JFC said in the announcement.
The merger has cleared government approvals and fulfilled closing conditions, which were set back in July. JFC acquired Coffee Bean for a price tag of US$350m (PHP 18.3bn), with an agreement that the former will not be taking any debts to go with the deal. The much-publicised purchase is financed through bridge loans secured by Jollibee Worldwide Pte Ltd.
International Coffee & Tea, LLC, Coffee Bean operates 1,180 outlets across 27 countries, with 150 located in the Philippines.
Photo credit: The Coffee Bean and Tea Leaf Facebook
