MANILA, Philippines – Jollibee Foods Corporation (JFC) has officially signed a contract to buy another 45 percent of Smashburger Master Limited Liability Company (LLC), a US-based burger restaurant chain.
Smashburger Master LLC is a burger restaurant chain in the USA, which was established in 2007 at Denver, Colorado, by Rick Schaden and Tom Ryan.
The 100 million US dollar deal successfully increased the Smashburger ownership of Bee Good! Incorporated (BGI), a subsidiary solely owned by Jollibee Foods Corp., to 85 percent.
JFC mentioned in its report to the Philippine Stock Exchange that it hopes for the transaction to be finalized within 2 months, subject to US government approvals.
Its acquisition of additional Smashburger shares will enable Jollibee to have further significant operations in the USA.
In addition, the deal would raise US sales contribution from 5 percent to 15 percent of Jollibee Foods Corp.’s international systemwide sales.
The Smashburger consolidation into Jollibee Foods Corp. will expand its global store network to 4,162 by 365 stores.
At the same time, it will also widen Jollibee’s presence geographically from 16 to 21 countries, adding United Kingdom (England and Scotland), Costa Rica, El Salvador, Egypt, and Panama.
As soon as the acquisition is completed, Jollibee will revise the debt structure of Smashburger to specifically lessen the financing cost for its 80 million US dollar loan, thus allowing the company to create further investments for long-term growth (LTG).
JFC also revealed that the company has pledged to issue funds to Smashburger for the purpose of paying the loan commitment worth 80 million US dollar, of which the maturity date is on May 15.
Jollibee Foods Corporation is a Filipino fast-food chain based in Pasig City, Philippines. It owns the fast-food brand, Jollibee. Jollibee is currently one of the largest fast-food chains here in the country. It was founded by Tony Tan Caktiong in 1975.
As the year 2016 closed, it was reported to have a total of 978 Jollibee stores locally, both company owned and franchised, and a total of 167 stores internationally in the USA, Vietnam, Middle East, Brunei, Singapore, Hong Kong, and Canada.
Jollibee Foods Corp. was incorporated on the 11th of January, 1978. The company, together with its affiliates and subsidiaries, is primarily involved in the operation, franchising, and development of quick-service restaurants (QSRs) under Jollibee, Greenwich, Mang Inasal, Chowking, Red Ribbon, Dunkin Donuts, Burger King, Highlands Coffee, Hong Zhuang Yang, Yonghe King, Pho24, 12 Hotpot, and Smashburger brand names.
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