Philippines’ Jollibee to acquire The Coffee Bean & Tea Leaf for US$350M

The Philippines-based Jollibee Foods Corporation (JFC) has announced its US$350 million acquisition of United States coffee chain The Coffee Bean & Tea Leaf. JFC subsidiary Jollibee Worldwide entered into an agreement to invest US$100 million in a new Singapore-based holding company, amounting to an 80 per cent share, to acquire the coffee chain. A Vietnamese partner will own the remaining 20 per cent. JFC will invest a further US$250 million, partly to pay off The Coffee Bean & Tea Leaf’s debt. This will be paid back by the 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,” JFC said in a filing to the Philippine Stock Exchange. “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. “Our priority is to accelerate the growth of The Coffee Bean & Tea Leaf brand particularly in Asia, by strengthening its brand development, marketing and franchise support system.” JFC says the acquisition makes The Coffee Bean & Tea Leaf its second largest business after the Jollibee brand. Coffee will account for 14 per cent of JFC’s worldwide system sales. Coffee will also contribute 26 per cent to its total store network, bring international business’ contribution to 36 per cent of JFC’s worldwide sales and will bring JFC closer to its vision “to be one of the top five restaurant companies in the world in terms of market capitalisation”. Jollibee is one of the largest fast food chains in the Philippines, operating a nationwide network of over 750 stores. The company has also embarked on an aggressive international expansion plan in the US, Vietnam, Hong Kong, Saudi Arabia, Qatar and Brunei. Founded in 1963 and based in California, The Coffee Bean & Tea Leaf consists of more than 1000 self-owned and franchised stores in the US and around 30 other countries. Follow Global Coffee Report on LinkedIn, Facebook, and Twitter for up-to-date news and analysis of the global coffee industry.