Homegrown fast-food giant Jollibee Foods Corp. has finalized a deal to amass a controlling stake in U.S. hamburger chain Smashburger, increasing its share of the large U.S. market and expanding its presence all over the world.
In a disclosure to the Philippine Stock Exchange last week, Jollibee said the closing conditions, including required government approvals, were obtained pursuant to a March 8 purchase agreement signed by its wholly owned subsidiary Bee Good! Inc. (BGI) to amass a further 45 percent of SJBF LLC, the parent company of the Smashburger business entities.
After finalizing a $100 million take care of Smashburger Master LLC, Jollibee officially owns an 85 percent stake in Smashburger through BGI, it said in a press release.
The transaction increased U.S. sales as a percentage of world sales from 5 percent to fifteen percent. As a result, foreign corporations now account for about 30 percent of Jollibee’s systemwide sales, up from 20 percent before the Smashburger deal.
In terms of store network, the consolidation of Smashburger with Jollibee increases its global store network by 365 stores, or 9.6 percent, to 4,162. This will expand Jollibee’s geographic footprint from 16 countries to 21, with Costa Rica, Egypt, El Salvador, the United Kingdom (England and Scotland) and Panama added to its global footprint.
Smashburger, based in Denver, Colorado, has 365 restaurants worldwide, in 39 U.S. states and 10 foreign markets.
Jollibee — currently probably the most priceless restaurant chains on the earth by market capitalization — said one among its priorities following the acquisition shall be to alter Smashburger’s debt structure to significantly reduce financing costs and permit the corporate to make larger investments to make sure long-term growth.
Source: Business.inquirer.net
