The country’s biggest food retailer is acquiring majority control of a fast-growing barbeque fastfood chain in a continuing bid to beef up its business portfolio. In a disclosure to the stock exchange, Jollibee Foods Corporation said it is acquiring 70% of Mang Inasal Philippines Inc, the owner and operator of Mang Inasal, a chain of 303 restaurants all over the country serving grilled chicken and other Filipino food. Of the estimated P3 billion transaction price, Jollibee has paid P200 million to parent firm Injap Investments Inc., which will continue to hold 30% of Mang Inasal. Ninety-percent of the balance will be paid when the two parties sign a share purchase agreement, which is subject to a 30-day due diligence conducted by PriceWaterhouse Coopers-Isla Lipana & Co. auditing firm and Romulo Mabanta Sayoc De los Angeles law firm. The remaining 10% will be paid over 3 years.
Mang Inasal’s network will add about 5% to Jollibee’s worldwide systemwide sales, 5% to its revenues, and 7% to its operating income. Once completed, the deal will also increase Jollibee’s current 1,578 stores in the Philippines and 375 abroad by 16%. Jollibee has recently sold its stake in Delifrance, a French pastry store that it acquired in 2006 and divested from two businesses in Taiwan and China in line with its thrust to concentrate on larger quick-server restaurant businesses.
Mang Inasal’s network will add about 5% to Jollibee’s worldwide systemwide sales, 5% to its revenues, and 7% to its operating income. Once completed, the deal will also increase Jollibee’s current 1,578 stores in the Philippines and 375 abroad by 16%. Jollibee has recently sold its stake in Delifrance, a French pastry store that it acquired in 2006 and divested from two businesses in Taiwan and China in line with its thrust to concentrate on larger quick-server restaurant businesses.
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