Further to its October 13, 2015 and October 27, 2015 disclosures, Jollibee Foods Corporation (“JFC”) disclosed today that, in accordance with the post-closing adjustment mechanism under the agreement between its wholly-owned subsidiary Bee Good! Inc. (“BGI”) and Smashburger Master LLC (“Master”), BGI paid Master the amount of USD777,494, in addition to the amount of USD99,473,918 that was paid on closing of the transaction.
Accordingly, the final purchase price for BGI’s 40 percent stake in the Smashburger® business is USD100,251,412. The purchase price adjustment, as validated by JFC’s accounting and tax advisor for this transaction Isla Lipana & Co./PwC, was mainly attributable to Master’s higher (than estimated) actual level of cash.
Smashburger is one of the fastest growing restaurant brands in the US. With headquarters in Denver, Colorado, there are 339 Smashburger restaurants worldwide in 35 states in the US and in 7 foreign markets.
Significant US Presence for Jollibee
This acquisition will make JFC’s presence in the US more significant, going beyond the Filipino market and serving mainstream consumers in the USD 100 billion burger market, a food segment which is estimated to be almost three times larger than the pizza, sandwich or coffee segment in terms of sales, Jollibee said in disclosure to the Philippine Stock Exchange.
“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,” Jollibee said.
The amount paid by BGI for its 40 percent stake is USD 99,473,918, subject to post-closing adjustment based on a pre-agreed mechanism with Master.
Jollibee is the biggest fastfood chain in the Philippines, topping other international fastfood brands such as McDonald’s and Burger King. It started as an ice cream parlor and later became one of the country’s business success stories. – BusinessNewsAsia.com