Philippine fast food giant Jollibee Foods Corp. (JFC) will be acquiring The Coffee Bean & Tea Leaf (CBTL) through a $100-million investment.
The listed food company told the Philippine Stock Exchange on Wednesday it will be acquiring the American coffee chain, its biggest acquisition outside the Philippines.
The deal will be made through its Singapore-based subsidiary Jollibee Worldwide Pte. Ltd. that owns Java Ventures, LLC. in the United States.
Coffee Bean is based in Los Angeles, California, but operates 1,189 outlets across 27 countries, with 139 located in the Philippines. It will be the second-largest business in the JFC group after its flagship brand, Jollibee.
Once completed, Coffee Bean is estimated to add 14 percent to JFC's global systemwide sales and 26 percent to its store network. It will likewise "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 in its disclosure.
Jollibee has been on expansion mode over the past years. Currently, it owns Highlands Coffee which is focused on Vietnam.
"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.
The firm led by successful entrepreneur Tony Tan Caktiong expects to spend $350 million on a debt-free basis for the acquisition, and will take at least two months from the signing of the purchase deal to materialize.
The transaction is still subject to US government approvals.
Other brands under JFC are Greenwich, Mang Inasal, Red Ribbon, Burger King, and Chowking in the local market. Jollibee previously acquired global brands like Smashburger, Hard Rock Cafe, and Pho 24.
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This article first appeared on CNN Philippines.
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