Jollibee just purchased the California coffee chain, the Coffee Bean and Tea Leaf for $350 million!
Recent filings show that the Philippines Securities and Exchange Commission, Jollibee Foods Corp. said it entered an agreement to buy 100% of the Coffee Bean & Tea Leaf brand, owned by International Coffee & Tea. This acquisition shifts ownership overseas as Jollibee is a Philippines based company, best known for their restaurants fried chicken and bee mascot. Tony Tan Caktiong, owner of Jollibee has been looking to expand the food company’s footprint in the United States and by doing do, he hopes to strengthen the Coffee Bean brand across Asia!
Jollibee will be investing $100 million in a holding company that will acquire 100% of the Coffee Bean. Jollibee said it also plans to issue shares worth at least $250 million in the holding company within six to nine months, and it plans to take the company public within five years. Caktiong wants to bring the company closer to its vision of being “one of the top 5 restaurant companies in the world.”
Coffee Bean & Tea Leaf is set to add 14% to Jollibee’s global sales and expand its base by more than a quarter. The Coffee Bean currently has 1,189 locations, 339 of which are company-owned, and 284 are located in the U.S. Jollibee is also set to spend $250 million to pay off some of the coffee chain’s debt.