The Jollibee Foods Corporation (JFC) may soon own majority stakes in American burger chain Smashburger as it seeks to increase its current 40 percent stake.
Home to the popular Jollibee chain, JFC is hoping to seal a $100 million deal that would gain it another 45 percent stake in the US-based string of burger restaurants, it disclosed to the Philippine Stock Exchange Tuesday.
Expected to be accomplished in a span of one to two months, the transaction is still subject to regulatory approvals in the US, as well as “certain closing conditions”, according to a report by The Manila Times.
Once it is completed, JFC would be owning majority of the Smashburger stakes at 85 percent, raising its current 40 percent stake owned through subsidiary Bee Good! Inc.
“With this acquisition of more shares, JFC will have a more significant business in the United States”, it said at the disclosure, as it will raise the US sales contribution to worldwide “system wide sales” to 15 percent, The Manila Times reported.
In a Nikkei Asian Review article, it was mentioned that Smashburger’s 365 stores will raise Jollibee’s count to 4,162 as announced by JFC. The company also said that the acquisition will “geographical presence from 16 countries to 21 adding Costa Rica, Egypt, El Salvador, United Kingdom (England and Scotland), and Panama”, according to The Manila Times.
The same report also pointed out that the move will expand Jollibee’s US reach, from 10 states to 39, as well as its Canadian locations from two to eight.
Outside North America, Jollibee also has branches in Brunei, Vietnam, Singapore, Hongkong, Saudi Arabia, UAE, and Bahrain.
Featured photo from Jollibee’s website.