By: Arra B. Francia, Business World
Homegrown food giant Jollibee Foods Corp. (JFC) is embarking on its largest acquisition to-date with a $350-million deal to acquire California-based firm The Coffee Bean & Tea Leaf (CBTL).
In a disclosure to the stock exchange on Wednesday, the JFC said its wholly owned unit, Jollibee Worldwide Pte. Ltd. (JWPL), entered into an agreement to invest $100 million in a new Singapore-based holding firm that will acquire 100% of the CBTL brand.
JFC said the total consideration for the transaction is $350 million on a debt-free basis, which means that CBTL will have no debt upon acquisition.
“The acquisition of the CBTL brand will be JFC’s largest and most multinational so far with business presence in 27 countries… Our priority is to accelerate the growth of CBTL brand particularly in Asia, by strengthening its brand development, marketing, and franchise support system,” JFC Chairman Tony Tan Caktiong said in a statement.
The initial $100 million will represent 80% of the equity of the new holding company, which JFC will finance through a bridge loan.
The article is first published HERE.