Jollibee brews South Korean coffee venture with new acquisition

Asian food conglomerate Jollibee Foods Corp. (JFC) continues its buying spree with the acquisition of a South Korean value coffee brand to further fortify the group’s coffee and tea business.

- RICHMOND MERCURIO

JFC’s wholly owned subsidiary Jollibee Worldwide Pte. Ltd. (JWPL) is set to acquire majority shareholding of 70 percent in Compose Coffee Co. Ltd. and JMCF Co. Ltd., collectively called Compose Coffee, for approximately $340 million.

Titan Dining II LP and Elevation Equity Partners Korea Limited will hold the remaining shareholdings in Compose Coffee with effective interest of five percent and 25 percent, respectively.

Through JWPL, JFC has a 90 percent participating interest in Titan Fund II, which is focused on strategic investments in food and beverage concepts with the objective to further grow in Asia Pacific food service brands and bring strong global food service brands to the region.

Elevation, on the other hand, is a private equity firm focusing on mid-market buyouts and growth capital opportunities in the consumer space in Korea and the rest of Asia.

JFC said the acquisition is aligned with the group’s commitment to the coffee and tea Segment and franchising initiatives.