Philippines fastfood giant Jollibee Foods Corporation (JFC) announced today that it entered into an agreement with Smashburger Master LLC (Master) to acquire 40% of SJBF LLC (SJBF) owner, operator and franchiser of Smashburger, a fastfood chain based in the United States. The acquisition of stake in the US-based fast-food chain will be through Jollibee Foods Corporation’s Bee Good! Inc. (BGI).
JFC said there are 339 Smashburger restaurants worldwide in 35 states in the US and in 7 foreign markets.
“BGI’s purchase of 40% of SJBF is expected to be completed within 2015, subject to the fulfillment of certain conditions, including due performance by Master of its obligations under the agreement, continued accuracy of representations and warranties, and the procurement of consents from third parties relevant to the Smashburger business,” JFC said in a disclosure to Philippine Stock Exchange.
The Filipino fastfood giant added that acquisition will make JFC’s presence in the US more significant, going beyond the Filipino market and serving the mainstream consumers in the USD100 billion US burger market.
“This acquisition will make the US one of JFC’s most important markets and drivers of long term growth along with the Philippines, China and the Filipino markets abroad,” JFC said.
IT added that “BGI has a mechanism in the agreement with Master to purchase up to an additional 35% of Smashburger between 2018 and 2021 and the balance of 25% between 2019 at the earliest and 2026 at the latest. The purchase price for the remaining 60% will be based on the achievement of certain financial performance targets agreed between BGI and Master.”