Jollibee Food Corporation is looking to acquire The Coffee Bean & Tea Leaf brand for US$350 million. The fast food company has agreed to invest US$100 million in a Singapore-based holding company to acquire The Coffee Bean & Tea Leaf brand. The acquiring entity will be Jollibee Worldwide’s wholly owned subsidiary Java Ventures, which will eventually be a wholly-owned subsidiary of the new holding company.
The acquisition of The Coffee Bean & Tea Leaf brand will mark as Jollibee’s largest so far with business presence in 27 countries. Jollibee aims to accelerate the growth of The Coffee Bean & Tea Leaf brand particularly in Asia, by strengthening its brand development, marketing and franchise support system.
According to Jollibee in a stock exchange filing, this acquisition will add 14% to its global system wide sales, 26% to its total store network, and bring international business’ contribution to 36% of worldwide sales. In addition, the fast food company said this would also bring the brand closer to its vision to be one of the top five restaurant companies in the world in terms of market capitalisation.
The acquisition is expected to be completed not earlier than 60 days from execution of the purchase agreement, and is also subject to government approvals in the United States and certain closing conditions.
Most recently, Jollibee Foods Corporation delayed the planned IPO of SuperFoods Group in Vietnam which owns Highlands Coffee. With business largely in Vietnam, Highlands Coffee reported strong performance and Jollibee’s acquisition remains under review.