The Market Monitor Minding the Nation's Business
By Luis Leoncio
Jollibee Foods Corp. (JFC) has completed a major foray into the US burger business through a minority infusion into the upscale American fast-food chain Smashburger.
JFC, through international operations unit Bee Good Inc. (BGI), has completed the acquisition from Smashburger Master LLC of 40 percent of the outstanding units of SJBF LLC, the parent company of the entities comprising the Smashburger business.
The amount paid by BGI for its 40-percent stake was $99.47 million, subject to post-closing adjustments based on a pre-agreed mechanism with Master, JFC said in a statement.
JFC funded the acquisition through cash reserves and a 10-year loan from THE Metropolitan Bank and Trust Co. (Metrobank).
BGI has an option in the agreement with Master to purchase up to an additional 35 percent of SJBF between 2018 and 2021, and the balance of 25 percent between 2019 and 2026.
The purchase price for the remaining 60 percent would be based on the achievement of certain financial performance targets agreed upon between BGI and Master.
Smashburger is a leading Fast Casual “better burger” restaurant known for its fresh, never frozen, 100-percent Certified Angus Beef burgers that are smashed on the grill to sear in the juices, creating an upscale quality burger packed with flavor and served at a great value.
The chain is recog