Jol­libee seals pur­chase of Smashburger

The Philippine Star - - BUSINESS - By IRIS GON­ZA­LES

Filipino-owned food con­glom­er­ate Jol­libee Foods Corp. has sealed its ac­qui­si­tion of an ad­di­tional 45 per­cent stake in US-based Smashburger.

JFC, through wholly owned sub­sidiary Bee Good Inc., now owns 85 per­cent of Smashburger af­ter buy­ing an ini­tial 40 per­cent in 2015.

It will in­clude Smashburger in its fi­nan­cial con­sol­i­da­tion start­ing April 17.

“JFC’s ac­qui­si­tion of more shares in Smashburger will al­low it to have a more sig­nif­i­cant busi­ness in the United States in­creas­ing the sales con­tri­bu­tion from that coun­try to JFC’s world­wide sys­tem wide sales from five per­cent to 15 per­cent, and the sales con­tri­bu­tion from for­eign busi­ness to world­wide sys­tem wide sales from 20 per­cent to 30 per­cent,” JFC said yes­ter­day.

Smashburger serves fresh 100 per­cent cer­ti­fied An­gus beef burg­ers.

The ac­qui­si­tion in­creases JFC’s world­wide store net­work by 365 stores or 9.6 per­cent to 4,162 and ex­pands JFC’s global pres­ence to 21 coun­tries from16 with the ad­di­tion of Costa Rica, Egypt, El Sal­vador, United King­dom and Panama.

Once the ac­qui­si­tion is fi­nal­ized, JFC will change Smashburger’s debt struc­ture to sig­nif­i­cantly re­duce its fi­nanc­ing cost for its $80 mil­lion loan.

JFC ex­e­cuted a com­mit­ment let­ter to pro­vide fi­nanc­ing to Smashburger for the pay­ment of $80 mil­lion worth of loan obli­ga­tions which will ma­ture on May 15.

The fast­food giant in­tends to re­place it with a much lower cost of long term fi­nanc­ing at more le­nient terms.

JFC op­er­ates the largest food ser­vice net­work in the Philip­pines with 2,884 restau­rant out­lets in the coun­try as of Feb. 28 -- Jol­libee brand 1,071 stores, Chowk­ing 529, Green­wich 271, Red Rib­bon 425, Mang lnasal 495, and Burger King 93.

Abroad, it is op­er­at­ing 939 stores: Yonghe King (China) 311, Hong Zhuang Yuan (China) 44, Dunkin’ Donuts (China) 16, Jol­libee 201 (US 37, Viet­nam 99, Brunei 15, Saudi Ara­bia 12, UAE 10, Qatar seven, Sin­ga­pore five, Kuwait four, Hong Kong eight, Bahrain one, Canada two and Oman one), Red Rib­bon in the US 31, Chowk­ing 45 (US 15, UAE 20, Qatar three, Oman three, Kuwait three, and Saudi Ara­bia one), High­lands Cof­fee 248 (Viet­nam 222, Philip­pines 32), Pho 24 29 (Viet­nam 13, In­done­sia 15 and Korea one), and Hard Rock Cafe eight (Viet­nam two, Hong Kong three, Ma­cau three).

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