Jollibee Foods settles second Smashburger investment
Jollibee Foods has completed the majority acquisition on US-based Smashburger, raising its ownership of the chain to 85 per cent.
The deal, through Jollibee’s subsidiary Bee Good!, has added additional 45 per cent stake in Smashburger for US$100 million.
Smashburger will contribute 15 per cent to the Jollibee Group’s global system-wide sales from the current 5 per cent.
Jollibee expects to achieve a 50/50 revenue split target from its fast-growing foreign operations.
“A much lower cost long-term financing, made possible by Jollibee’s strong balance sheet, will significantly improve the net income of Smashburger immediately,” said Jollibee CFO Ysmael Baysa.
The acquisition has also increased Jollibee’s worldwide store network by 365 stores to 4162 as well as its geographical presence from 16 countries to 21, adding Costa Rica, Egypt, El Salvador, England, Scotland, and Panama.