Jollibee to Acquire Majority Stake in South Korea's Compose Coffee

Jollibee Foods Corp. (JFC), the Philippines' largest restaurant operator, is set to acquire a 70% stake in South Korea's Compose Coffee for $340 million. The deal will be executed through Jollibee's subsidiary, Jollibee Worldwide Pte. Ltd. Compose Coffee, which operates 2,612 stores in South Korea, is noted for its debt-free balance sheet and strong profitability margins.

The remaining 30% of Compose Coffee will be held by private equity firm Elevation Equity Partners Korea Limited (25%) and Titan Dining II LP (5%), which is associated with the Tim Ho Wan brand. The acquisition price represents approximately eight times Compose Coffee's annual earnings before interest, taxes, depreciation, and amortization (EBITDA). This strategic move is expected to enhance Jollibee's presence in the competitive international coffee market, increase its global store network to 10,000, and contribute to a 2% rise in the company's revenues and a 12% increase in pre-income tax earnings.