Jollibee Foods to take control of South Korea’s Compose Coffee in US$340 million deal

The Philippines’ greatest rapidly-meals chain Jollibee Foods will get a majority stake in South Korea’s Develop Espresso, as  allotment of a deal valuing the target at US$340 million, the company acknowledged on Tuesday (Jul 2).

Jollibee’s perfect acquisition by more than a couple of of retail outlets continues the company’s growth out of the country, that will fable for majority of its branches within the longer term.

Jollibee’s unit Jollibee Worldwide Pte will get 70 per cent of privately held Develop Espresso for US$238 million, and its majority-owned Titan Fund will hold 5 per cent, the immediate-meals firm acknowledged in an announcement. The remaining 25 per cent will be held by inner most equity firm Elevation, it acknowledged.

Shares in Jollibee, which has a market fee of US$4.29 billion, rose 0.44 per cent on Tuesday, outpacing the 0.62 per cent decline within the broader stock market index.

“Here’s a just slide by Jollibee to extra lengthen its world footprint and hold just appropriate thing about magnificent alternatives in promising markets,” acknowledged Juan Paolo Colet, managing director at investment financial institution China Bank Capital in Manila. The acquisition is anticipated to be cash accretive, growing shareholder fee over the prolonged flee, he added.

Develop Espresso has 2,470 retail outlets, all franchised, giving it a debt-free stability sheet, and just cash returns and income margins, acknowledged Jollibee, that will amplify its world store network to 10,000 with the deal.

The investment affords Jollibee obtain entry to to South Korea, which ranks third globally through espresso consumption per capita, the company acknowledged.

Develop Espresso and its roasting facility were primarily based in Busan in 2014.

Recognized for its sweet-style spaghetti, burgers and fried chicken, Jollibee is dominant within the Philippines, outselling McDonald’s and Yum Manufacturers’ KFC.

In 2019, Jollibee invested US$100 million to get loss-making Espresso Bean & Tea Leaf.