The Philippines’ Jollibee Foods Corp. (JFC) has purchased Los Angeles-based Coffee Bean & Tea Leaf for a whopping $350 million.
According to a filing with the Philippine Stock Exchange on Wednesday, the food giant will invest $100 million for an 80% share in a Singapore-based holding company that is acquiring 100% of the coffee chain.
Jollibee’s partner in its Vietnam coffee and restaurant business will own the remaining 20% of the holding company.
JFC will fork over another $250 million to pay off Coffee Bean & Tea Leaf’s debt, which will be paid back by the Singapore-based holding company, according to Channel NewsAsia.
“The acquisition of The Coffee Bean & Tea Leaf brand will be (Jollibee Foods Corp)’s largest and most multinational so far with business presence in 27 countries,” Jollibee chairman Tony Tan Caktiong was quoted as saying.
Coffee Bean & Tea Leaf will be Jollibee’s second-biggest business and will account for 14% of worldwide system sales.
“This will add 14% to its global system-wide sales, 26% to its total store network, will bring international business’ contribution to 36% of worldwide sales and will bring (Jollibee Foods Corp) closer to its vision to be one of the top five restaurant companies in the world in terms of market capitalization,” Caktiong added.
Jollibee Foods Corp. operates 3,195 restaurants as well as 1,418 stores across various brands around the world.