| The Philippines

Jollibee Foods Corp agrees to acquire Coffee Bean & Tea Leaf in $350m deal

Filipino fast food chain seeks to harness Coffee Bean & Tea Leaf’s global store footprint to gain footholds in Southeast Asia, the US and Middle East

Coffee Bean & Tea Leaf was founded in LA in 1963 and has built a sizable presence in Southeast Asia | Photo via Flickr 



In a press statement, Jollibee said the acquisition would add 14% to its global system-wide sales and 26% to its total store network. The terms the deal will see the Filipino fast food firm invest $100m for an 80% share in a Singapore holding company that will acquire Coffee Bean & Tea Leaf (CBTL). The remaining 20% stake will be owned by Jollibee’s Vietnamese coffee and restaurant business partner, with the Singaporean holding company paying back a further $250m invested by Jollibee.

“The acquisition of Coffee Bean & Tea Leaf will be Jollibee’s largest and most multinational so far with a business presence in 27 countries,” said Jollibee Chairman Tony Tan Caktiong.

The acquisition will give Jollibee access to CBTL’s 1,189 store global portfolio, with the vast majority of stores located in Southeast Asia and a presence in the Middle East. In June 2018, CBTL announced ambitious plans to grow its US presence to from around 300 to 1,000 stores within 5-10 years.

Like many developed coffee markets around the world, the US has experienced a flurry of foreign investment and market consolidation over the last 18 months. Together, Starbucks, Dunkin’ Donuts and German conglomerate, JAB Holdings, which owns café brands such as Peets, Caribou and Panera Bread, hold close to an 80% share of the US market.

Founded in 1978, Jollibee Food Corp is the largest fast food operator in the Philippines, operating more than 3,190 stores across the western Pacific nation and a further 1,418 stores across international markets including Vietnam, Saudi Arabia, Qatar, Hong Kong and Kuwait.
 

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