Jollibee seals purchase of Smashburger
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).