Jollibee gets bigger bite of US-based Smashburger

MANILA, Philippines — Jollibee Foods Corp. on Tuesday announced it has completed the acquisition of additional 45 percent share in US hamburger chain Smashburger Master LLC., as the Philippine fast-food giant expands its global presence.

In a disclosure to the stock exchange, JFC said it now owns 85 percent of Smashburger through Bee Good! Inc. after securing US government approval.

BGI is a wholly-owned subsidiary of JFC. With the completion of the acquisition, JFC will include Smashburger in its financial consolidation starting April 17, 2018.

The deal is expected to increase JFC’s worldwide store network by 365, and expand its geographical presence to 21 countries from 16 countries.

“JFC’s acquisition of more shares in Smashburger will allow it to have a more significant business in the United States,” the company told the stock exchange.

JFC, which has a market capitalization of more than P300 billion, operates the largest food service network in the Philippines. As of end-February, it was operating 2,884 restaurant outlets in the country.

With its takeover of Smashburger, JFC said it will provide financing for the Denver-based company’s loan obligation of approximately $80 million.

“A much lower-cost long-term financing, made possible by JFC’s strong balance sheet will significantly improve the net income of Smashburger immediately,” said JFC Chief Financial Officer Ysmael Baysa.

“It will also enable Smashburger to make more meaningful investments for healthier and faster growth,” Baysa added.

As of 3:20 p.m., shares in JFC were down by P3.00 or 1.03 percent to P288.60 on Tuesday.