JFC completes $350-M acquisition of CBTL
Published Sep 24, 2019 12:00 am
By James A. Loyola
Jollibee Foods Corporation (JFC), one of Asia’s largest food service companies, has completed the US$350 million acquisition of 100 percent of The Coffee Bean & Tea Leaf® (CBTL) specialty coffee and tea brand, based in Los Angeles, California, USA.
(REUTERS / MANILA BULLETIN)
In a disclosure to the Philippine Stock Exchange, Jollibee said the closing of the transaction was effected after the parties had completed the necessary closing conditions, including required government approvals, provided under the executed purchase agreement.
Consistent with the terms of the executed purchase agreement, JFC acquired CBTL for US$350 million (P18.3 billion) on a debt-free basis (the acquired business will have no debt upon acquisition).
The acquiring entity is Java Ventures, LLC, a US-based wholly owned subsidiary of Super Magnificent Coffee Company Pte. Ltd. (SMCC Singapore). SMCC Singapore is a subsidiary of Jollibee Worldwide Pte Ltd.
The payment for the acquisition of CBTL is being funded by proceeds from bridge loans entered into by JWPL with several financial institutions.
The acquisition of The Coffee Bean & Tea Leaf brand is JFC’s largest and most multinational with business presence in 27 countries.
This will add 14 percent to its global system wide sales, 26 percent to its total store network, will bring international business’ contribution to 36 percent of worldwide sales and will bring JFC closer to its vision to be one of the top 5 restaurant companies in the world in terms of market capitalization.
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.
CBTL will be JFC’s second largest business after Jollibee brand while coffee business will account for 14% of JFC’s worldwide system sales.
As at August 31, 2019, CBTL had 1,180 outlets (company owned 336, franchised 844), of which 288 are in the US, 439 in Southeast Asia (Philippines 150, Indonesia 88, Malaysia 100, Singapore 65), 301 in East Asia (South Korea 290), 152 in the Middle East and other parts of Asia (Kuwait 36, Qatar 28, Saudi Arabia 16, Egypt 13, India 25). Total revenue in 2018 was US$313 million.
(REUTERS / MANILA BULLETIN)
In a disclosure to the Philippine Stock Exchange, Jollibee said the closing of the transaction was effected after the parties had completed the necessary closing conditions, including required government approvals, provided under the executed purchase agreement.
Consistent with the terms of the executed purchase agreement, JFC acquired CBTL for US$350 million (P18.3 billion) on a debt-free basis (the acquired business will have no debt upon acquisition).
The acquiring entity is Java Ventures, LLC, a US-based wholly owned subsidiary of Super Magnificent Coffee Company Pte. Ltd. (SMCC Singapore). SMCC Singapore is a subsidiary of Jollibee Worldwide Pte Ltd.
The payment for the acquisition of CBTL is being funded by proceeds from bridge loans entered into by JWPL with several financial institutions.
The acquisition of The Coffee Bean & Tea Leaf brand is JFC’s largest and most multinational with business presence in 27 countries.
This will add 14 percent to its global system wide sales, 26 percent to its total store network, will bring international business’ contribution to 36 percent of worldwide sales and will bring JFC closer to its vision to be one of the top 5 restaurant companies in the world in terms of market capitalization.
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.
CBTL will be JFC’s second largest business after Jollibee brand while coffee business will account for 14% of JFC’s worldwide system sales.
As at August 31, 2019, CBTL had 1,180 outlets (company owned 336, franchised 844), of which 288 are in the US, 439 in Southeast Asia (Philippines 150, Indonesia 88, Malaysia 100, Singapore 65), 301 in East Asia (South Korea 290), 152 in the Middle East and other parts of Asia (Kuwait 36, Qatar 28, Saudi Arabia 16, Egypt 13, India 25). Total revenue in 2018 was US$313 million.