JOLLIBEE Foods Corporation is acquiring the Coffee Bean & Tea Leaf (CBTL) brand for a total of US$350 million.
In a statement Wednesday, July 24, Jollibee said the acquisition will be its largest so far, as the specialty coffee and tea brand has presence in 27 countries.
The acquisition will be made through Java Ventures, LLC (United States), a wholly owned subsidiary of Jollibee Worldwide Pte Ltd (JWPL Singapore), from International Coffee & Tea, LLC, the Los Angeles-based owner and operator of CBTL.
The acquisition, which was approved by Jollibee's board of directors on July 24, 2019, is seen to add 14 percent to the group's global system wide sales, 26 percent to its total store network, and bring international business’ contribution to 36 percent of worldwide sales.
This "will bring JFC closer to its vision to be one of the top 5 restaurant companies in the world in terms of market capitalization," the company said.
"Combined with Highlands Coffee, with business mostly in Vietnam, this acquisition will enable JFC to become an important player in the large, fast growing and profitable coffee business," it added.
CBTL will be JFC’s second largest business after the Jollibee brand.
"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," the company said.
The total consideration for this acquisition is US$350 million on a debt-free basis, which means the acquired business will have no debt upon acquisition.
The transaction is seen to be completed within two months after a purchase agreement is signed and upon approval by regulatory agencies in the US. (From PR/SunStar Philippines)