Jollibee Foods Corporation (JFC) of the Philippines has completed its acquisition of a 70% stake in South Korea’s Compose Coffee Co., Ltd. and JMCF Co., Ltd. The transaction, valued at approximately $340 million (KRW 470 billion), solidifies JFC’s entry into the lucrative coffee market in South Korea.
JFC’s subsidiary, Jollibee Worldwide Pte. Ltd. (JWPL), will now hold the majority shareholding in Compose Coffee, with Titan Dining Partners II Ltd. and Elevation Equity Partners Korea Limited retaining 5% and 25% stakes, respectively.
In a statement, JFC highlighted that the acquisition aligns with its strategic focus on the coffee and tea segment and its commitment to expanding through franchising initiatives. The move is seen as a significant step for JFC to capitalize on South Korea’s robust coffee consumption market, which ranks third globally in terms of coffee consumption per capita.
The acquisition is expected to pave the way for JFC’s rapid growth and enhance its presence in the international coffee industry, marking a strategic milestone in its global expansion strategy.