Jollibee Foods Corporation (JFC) has just signed a $350 million deal to acquire 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 on a debt-free basis, the company’s investment is estimated at $100 million.
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.
JFC chairman Tony Tan Caktiong 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 & Tea Leaf brand in Asia, by strengthening its brand development, marketing, and franchise support system.”