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Philippines' Jollibee buys Coffee Bean for $100 million in overseas push

Reuters logo Reuters 24/7/2019
a group of people sitting at a table in a restaurant: FILE PHOTO: Customers eat at a Jolibee fastfood outlet in Quezon City, metro Manila © Reuters/Dondi Tawatao FILE PHOTO: Customers eat at a Jolibee fastfood outlet in Quezon City, metro Manila MANILA (Reuters) - Philippines' Jollibee Foods Corp (JFC) , a major Asian fast-food operator, said on Wednesday it had agreed to acquire U.S. brand Coffee Bean & Tea Leaf (CBTL) for $100 million as part of its rapid expansion outside its home market.

"The acquisition of Coffee Bean & Tea Leaf will be Jollibee's largest and most multinational so far with business presence in 27 countries," Jollibee Chairman Tony Tan Caktiong said in a statement, adding that the acquisition will add 14% to its global system-wide sales and 26% to its total store network.

a store front at night: FILE PHOTO: A man sits in a The Coffee Bean & Tea Leaf cafe in the rain in the Manhattan borough New York © Reuters/Carlo Allegri FILE PHOTO: A man sits in a The Coffee Bean & Tea Leaf cafe in the rain in the Manhattan borough New York

Los Angeles-based CBTL has 1,189 outlets spread across the United States, Southeast Asia and the Middle East, and is rapidly growing in Asia. Nearly three-fourths of its outlets are franchised.

JFC will invest $100 million for an 80% share in a Singapore holding company that will acquire CBTL. The remaining 20% stake will be owned by JFC's partner in its Vietnam coffee and restaurant business.

JFC will invest another $250 million, which will be paid back by the holding company.

(Reporting by Neil Jerome Morales and Anshuman Daga; Editing by Stephen Coates)

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