| PHOTOS: Official Instagram accounts of Jollibee (@jollibee) and Compose Coffee (@compose_coffee)
Jollibee Foods Corp. will buy yet another coffee company for $340 million, further expanding the fast-food giant’s reach in the highly competitive coffee segment.
The company of tycoon Tony Tan Caktiong on Tuesday announced that its subsidiary, Jollibee Worldwide Pte. Ltd., had signed definitive agreements to acquire 70 percent of South Korea-based Compose Coffee.
READ: Jollibee opens 101st store in Seattle, Washington
Elevation Equity Partners Korea Ltd., a private equity firm with a focus on mid-market buyouts in South Korea and the rest of Asia, will have a 25-percent ownership stake. Titan Dining II LP, another equity firm in which Jollibee has a 90-percent participating interest through JWPL, will own 5 percent of Compose Coffee.
South Korea-based Compose Coffee | PHOTO: Official website of Compose Coffee
“The business that Compose Coffee has built in the past 10 years is impressive and we are excited to play a major role in its next phase of growth,” Caktiong said in a statement.
Jollibee closed higher by 0.44 percent at P226.20 per share on Tuesday as investors priced in news of the acquisition.
Founded in Busan in 2014, Compose Coffee currently has 2,470 stores—all franchises—making it Jollibee’s largest brand in terms of store count. The flagship Jollibee brand, the maker of the iconic Chickenjoy meals, has more than 1,600 stores across the globe.
Compose Coffee is expected to help lift Jollibee’s revenues by 2 percent, according to the fast-food chain.