Jollibee acquires Coffee Bean and Tea Leaf for $350M
MANILA, Philippines – Homegrown fast-food giant Jollibee Foods Corporation (JFC) has bagged its biggest multinational acquisition to date with a US$350-million deal to take over American specialty coffee and tea brand The Coffee Bean & Tea Leaf (CBTL).
The total consideration for this acquisition is $350 million on a debt-free basis but Jollibee’s net investment is estimated at $100 million, the company disclosed to the Philippine Stock Exchange on Wednesday.
Jollibee, through Singapore-based subsidiary Jollibee Worldwide Pte Ltd., will initially finance the entire acquisition through a bridge loan.
Its investment of $100 million represents 80 percent of the equity of the holding company with the balance of $250 million to be made as advances to the new holding company.
This holding company plans to issue within six to nine months preferred shares of at least $250 million, which will be used to repay Jollibee’s advances.
CBTL, which is based in Los Angeles, California, will be consolidated into JFC’s financial statements immediately upon acquisition.
Jollibee chairman Tony Tan Caktiong said: “The acquisition of The Coffee Bean & Tea Leaf® brand will be JFC’s largest and most multinational so far 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 five restaurant companies in the world in terms of market capitalization.”
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