Jollibee Foods Corporation (JFC) has just signed a 350 million dollar deal to acquire the US specialty coffee and tea brand The Coffee Bean & Tea Leaf (CBTL).
JFC has disclosed to the Philippine Stock Exchange on Wednesday that though the acquisition amounts to 350 million dollars on a debt-free basis, the company’s investment is estimated at 100 million dollars.
Through Singapore-based subsidiary Jollibee Worldwide Pte Ltd., JFC will initially be funding the entire acquisition via a bridge loan. The California-based CBTL will be formally consolidated into JFC’s financial statements after the acquisition.
Tony Tan Caktiong, JFC chairman, said: “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 [the] Jollibee brand, while coffee business will account for 14 percent of JFC’s worldwide system sales. Our priority is to accelerate the growth of The Coffee Bean and Tea Leaf brand in Asia, by strengthening its brand development, marketing, and franchise support system.”
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