Jollibee Foods Corp.’s $350-million takeover of American retailer Coffee Bean and Tea Leaf (CBTL) is complete, making the fast-food giant the first Filipino company to have a significant investment in the global retail coffee.
Jollibee told the Philippine Stock Exchange on Tuesday, Sept. 24, that the transaction was closed following the completion of conditions, including government approvals. Jollibee now owns 100 percent of CBTL for $350 million.
The company set out to become one of the top five restaurant companies in the world. With Coffee Bean and Tea Leaf’s positions in 27 countries, the acquisition will add 14 percent to Jollibee’s global sales, 26 percent to its total store network and boost the share of Jollibee’s international business to 36 percent of worldwide sales.
CBTL had 1,180 outlets on Aug. 31, of which 336 are company-owned and 844 were franchised. Of these, 288 are in the US, 439 in Southeast Asia (Philippines 150, Indonesia 88, Malaysia 100, Singapore 65), 301 in East Asia (South Korea 290), 152 in the Middle East and other parts of Asia (Kuwait 36, Qatar 28, Saudi Arabia 16, Egypt 13, India 25).
Coffee Bean and Tea Leaf recorded a $21 million net loss in 2018 but Jollibee projects it can reverse the brand’s fortunes in 12 to 18 months.