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Wed 24 Jul 2019 11:38 AM

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Philippines' Jollibee buys Coffee Bean for $350m

Los Angeles-based Coffee Bean will add 14% to Jollibee's global sales and expand its store network by more than a quarte

Philippines' Jollibee buys Coffee Bean for $350m
The Philippines’ biggest restaurant operator will initially invest $100 million in a Singapore holding company set up with its Vietnamese partners in the Superfoods Group to acquire the specialty coffee and tea brand.

Jollibee Foods Corp. will spend $350 million to purchase Coffee Bean & Tea Leaf, its largest acquisition.

The Philippines’ biggest restaurant operator will initially invest $100 million in a Singapore holding company set up with its Vietnamese partners in the Superfoods Group to acquire the specialty coffee and tea brand, Jollibee said in a disclosure to the stock exchange.

Los Angeles-based Coffee Bean will add 14% to Jollibee’s global sales and expand its store network by more than a quarter, Chairman Tony Tan Caktiong said in a statement. In 2018, the coffee chain reported $23.7 million in EBITDA on revenue of $313 million.

Highlights

  • Total consideration for the acquisition is $350 million on debt-free basis.
  • Jollibee shares continued their seven-day falling streak, with a 2.5% drop before trading was halted after the announcement. Trading will resume at 2:30 p.m. Manila time.
  • Jollibee will invest $100 million in the Singapore holding company, which will represent 80% of its equity, and $250 million in advances.
  • Owners of Viet Thai International Joint Stock Company, Jollibee’s partner in Highlands Coffee and Pho 24, will subscribe to the remaining 20%.
  • The initial public offering initially planned for Highlands Coffee this month is delayed and under review after the acquisition.

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