Jollibee Foods signs deal for bigger chunk of Smashburger
Jollibee Foods Corp. today said it has amended its agreement with the Smashburger to allow it to increase its stake in the American burger chain by an additional 10 percent.
Jollibee Foods’ wholly owned subsidiary Bee Good! Inc. signed an agreement with SJBF LLC, the parent company of Smashburger, in October 2015 to buy 40 percent of Smashburger. Jollibee Foods closed the deal in January 2016 when it announced that it paid $99.5 million for the transaction.
In a disclosure to the stock exchange today, Jollibee Foods said Bee Good! Inc. has reached an agreement with Smashburger to allow it to purchase an additional 45 percent of SJBF between 2018 and 2021. The original agreement was for an additional 35 from 2018 to 2021. BeeGood! also has the option to acquire the balance of 15 percent between 2019 and 2026.
“Smashburger is one of the fastest growing restaurant brands in the US. This acquisition will make JFC’s presence in the US more significant, going beyond the Filipino market and serving mainstream consumers in the $100 billion burger market,” Jollibee Foods said in its disclosure. “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.”
Smashburger is the leading fast casual burger chain in the US, boasting that its burgers are fresh and never frozen and are made from 100 percent certified angus beef. It is headquartered in Denver, Colorado and has 374 restaurants, mostly in the US.
The deal was approved by the board of directors of Jollibee Foods today.