JOLLIBEE Foods Corp. has fully acquired US-based Smashburger, following the purchase of its remaining stake in the Filipino-owned fastfoid chain for $10 million or P526 million.
In a regulatory filing on Friday, Jollibee said it acquired in cash, the remaining 15-percent stake in SJBF LLC, owner of Smashburger, through its subsidiary Bee Good! Inc. (BGI).
“Jollibee is now the sole owner of the Smashburger business,” it said.
Following the purchase, Jollibee said it would pour in more capital into Smashburger by converting an $80 million loan held by BGI into equity to support Smashburger’s growth in 2019.
“We look forward to the development of Smashburger into a very strong brand and business in the United States,” Jollibee Chairman Tony Tan Caktiong said.
Meanwhile, Jollibee Chief Executive Officer Ernesto Tanmantiong said: “We look forward to replicating in Smashburger the significant brand and business development that [the group] achieved in practically all its new and acquired businesses in the Philippines, China, Vietnam, and other countries through the introduction of [Jollibee’s] business methods.”
“We are preparing for even stronger growth in the United States with higher rate of store expansion led first by Jollibee starting in 2019 and by other brands in the succeeding years.”
To recall, Jollibee first acquired Smashburger with an initial stake of 40 percent, and was later raised to 85 percent in February. ANGELICA BALLESTEROS