MILAN – Further to its July 24, 2019 disclosure, Jollibee Foods Corporation (JFC), one of Asia’s largest food service companies, has completed the acquisition of 100% of The Coffee Bean & Tea Leaf (CBTL) specialty coffee and tea brand, based in Los Angeles, California, USA. The closing of the transaction was effected after the parties had completed the necessary closing conditions, including required government approvals, provided under the executed purchase agreement.
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% to its global system wide sales, 26% to its total store network, will bring international business’ contribution to 36% of worldwide sales and will bring JFC closer to its vision to be one of the top 5 restaurant companies in the world in terms of market capitalization.
Combined with Highlands Coffee, with business mostly in Vietnam, 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 Jollibee brand while coffee business will account for 14% of JFC’s worldwide system sales.
“Our priority is to accelerate the growth of The Coffee Bean and Tea Leaf® brand particularly in Asia, by strengthening its brand development, marketing and franchise support system,” stated the company in a press release.
The total consideration for this acquisition is USD350 million on a debt-free basis (the acquired business will have no debt upon acquisition).
As at August 31, 2019, CBTL had 1,180 outlets of which 336 are company-owned and 844 are franchised.
JFC operates 3,226 restaurant outlets in the country. It has a global network of 4,663 stores.
