PASIG CITY, Philippines – Jollibee Foods Corporation (JFC), one of Asia’s largest food service companies, disclosed today that through its wholly owned subsidiary Jollibee Worldwide Pte Ltd (JWPL, Singapore), it entered into an agreement to invest USD100 million in a new Singapore-based holding company (“holding company”) to acquire 100% of The Coffee Bean & Tea Leaf specialty coffee and tea brand (CBTL), based in Los Angeles, California, USA.
The acquiring entity will be JWPL’s wholly owned subsidiary Java Ventures, LLC (United States), which will eventually be a wholly owned subsidiary of the new holding company.
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.
The total consideration for this acquisition is USD350 million on a debt-free basis (the acquired business will have no debt upon acquisition). The acquisition is expected to be completed not earlier than 60 days from execution of the purchase agreement, subject to government approvals in the United States and meeting certain closing conditions.
JFC, through Java Ventures, will pay the Sellers in cash.
The transaction is expected to be completed on a date not earlier than sixty (60) days from execution of the purchase agreement, subject to governmental approvals in the United States and satisfaction of closing conditions.
ICT is in the business of owning, operating and franchising coffee shops operating under the trade name Coffee Bean & Tea Leaf.
Headquartered in Los Angeles, California, ICT owns and franchises Coffee Bean & Tea Leaf locations in the US and various countries worldwide.