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Jollibee Acquires South Korea’s Compose Coffee for $340M

by Nick

Jollibee Foods, the Philippines-based fast-food chain, has announced its plan to acquire a majority stake in South Korean coffee shop operator Compose Coffee. The acquisition, valued at $340 million, is part of Jollibee’s global expansion strategy.

Details of The Acquisition

Jollibee Worldwide, a wholly-owned unit of Jollibee Foods, will acquire a 70% stake in Compose Coffee for $238 million.

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Additionally, the Titan Fund, in which Jollibee Worldwide holds a majority stake, will acquire a further 5%. The remaining 25% interest will be purchased by private equity company Elevation Equity Partners Korea.

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Impact on Jollibee’s Global Network

This acquisition will expand Jollibee Foods’ global network to 10,000 stores. Compose Coffee currently operates 2,600 branches in South Korea, contributing significantly to this expansion. Jollibee highlighted that the franchised nature of Compose Coffee’s branches ensures a debt-free balance sheet, strong cash returns, and healthy profit margins.

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Financial And Strategic Benefits

The acquisition is expected to boost Jollibee Foods’ sales by 2%, with the international business now contributing 41% of its global revenues. In a filing to the Philippine Stock Exchange, Jollibee stated, “This acquisition aligns with JFC’s commitment to the coffee and tea segment and franchising initiatives. This strategic, rapid growth, financially lucrative investment serves as JFC’s gateway in unlocking the fast-growing international value coffee market in South Korea, which ranks third globally in terms of coffee consumption per capita.”

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Expansion in North America

Jollibee has also been expanding its presence in North America. The company recently opened a new restaurant in Seattle, Washington. This marks its third location in Washington State and its 101st in North America. The new outlet offers Jollibee’s signature items such as Chickenjoy and Peach Mango Pie.

This acquisition underscores Jollibee’s commitment to strengthening its global footprint and diversifying its portfolio in the competitive coffee and fast-food market.

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