Jollibee Foods to Take Control of S.Korea’s Compose Coffee in $340 Mln Deal

Jollibee Foods, the Philippines’ largest fast-food chain, is set to acquire a majority stake in South Korea’s Compose Coffee, valued at $340 million. The acquisition will be part of Jollibee’s expansion overseas, with the majority of its branches in the future. Jollibee Worldwide Pte will acquire 70% of Compose Coffee for $238 million, with Titan Fund taking 5%. The remaining 25% will be held by private equity firm Elevation. Jollibee’s shares rose 0.44% on Tuesday, outpacing the 0.62% decline in the broader stock market index. The acquisition is expected to be cash-accretive and create shareholder value over the long run. Compose Coffee has 2,470 franchised stores, providing Jollibee with access to South Korea, which ranks third globally in terms of coffee consumption per capita. Jollibee is dominant in the Philippines, outselling McDonald’s and Yum Brands’ KFC. In 2019, Jollibee invested $100 million to acquire loss-making Coffee Bean & Tea Leaf.

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