Jollibee Foods Corp. Acquires Korea’s Compose Coffee for $340M
Jollibee Foods Corp. has made a significant move in the coffee industry by acquiring South Korea-based Compose Coffee for $340 million. This acquisition further solidifies the fast-food giant’s presence in the competitive coffee market.
The subsidiary of tycoon Tony Tan Caktiong, Jollibee Worldwide Pte. Ltd., recently finalized agreements to purchase 70 percent of Compose Coffee. Elevation Equity Partners Korea Ltd. and Titan Dining II LP will also have ownership stakes in the company.
“The business that Compose Coffee has built in the past 10 years is impressive, and we are excited to play a major role in its next phase of growth,” said Caktiong in a statement.
Following the announcement of the acquisition, Jollibee’s stock closed higher by 0.44 percent at P226.20 per share on Tuesday as investors reacted positively.
Established in Busan in 2014, Compose Coffee currently operates 2,470 stores, all of which are franchises, making it Jollibee’s largest brand in terms of store count. This acquisition is expected to increase Jollibee’s revenues by 2 percent.
Overall, the addition of Compose Coffee to Jollibee’s portfolio marks a strategic move to expand its presence in the coffee industry and enhance its overall market position.
