Philippine Food Company Jollibee to Acquire 70% Stake in Korean Compose Coffee
Acquired for 330.5 Billion Won... Store Count Expanded by 34%
Jollibee Foods, the largest food company in the Philippines known for its pride chicken, is set to acquire a 70% stake in Korea's Compose Coffee for $238 million (approximately 330.5 billion KRW), Bloomberg reported on the 2nd (local time).
Jollibee plans to expand its brand into global markets including China, and to promote growth by expanding its coffee and tea business. Jollibee also holds stakes in the well-known coffee franchise Coffee Bean and Vietnam's Highlands Coffee.
In a filing with the stock exchange, Jollibee stated that it will serve as a gateway to Korea's rapidly growing coffee market, which ranks third in the world in per capita coffee consumption.
Jollibee estimates that with the acquisition of Compose Coffee, its sales will increase by 2% this year, and pre-tax profit will rise by 12%. The number of stores will increase by 34%.
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Tony Tan Caktiong, Chairman of Jollibee, said, "Compose Coffee has an attractive strategic fit with Jollibee and is on its way to becoming the largest and fastest-growing leading coffee company in Korea."
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