Jollibee increases stake in Smashburger to 85%

Filipino-owned Asian conglomerate Jollibee Foods Corp. (JFC) has raised its stake in US-based Smashburger to 85 percent from the initial 40 percent it acquired more than two years ago.

Through its wholly-owned subsidiary Bee Good! Inc. (BGI), JFC purchased an additional 45 percent of SJBF LLC, the parent company of the entities comprising the Smashburger business.

Smashburger Master LLC holds the remaining 15 percent. The transaction, valued at $100 million is expected to be completed in one to two months, subject to government approvals in the United States and meeting certain closing conditions,” JFC said.

JFC said that with the acquisition of more shares, JFC will have a more significant business in the US.

“The US will increase its contribution to our worldwide system wide sales from five percent to 15 percent. JFC will be able to participate in the very large mainstream American consumer market in addition to serving Filipino-Americans there.

JFC believes that it will be able to profitably provide the mainstream American consumer with superior tasting products with excellent services at very good value for money as it has demonstrated in the Philippines, China, Vietnam, Singapore, Hong Kong, Brunei and the Middle East,” it said.

The proportion of JFC’s foreign business to worldwide system wide sales will likewise increase to 30 percent from 20 percent at present, moving the food conglomerate a step closer to achieving its goal of 50-50 revenue split between the Philippines and foreign businesses.

But the company stressed that the Philippine business continues to expand strongly since its foreign business is growing even faster.

JFC will increase its worldwide store network by 365 stores to 4,162.

This will also expand JFC’s geographical presence from 16 countries to 21, adding Costa Rica, Egypt, El Salvador, United Kingdom and Panama.