Jollibee, Mang Inasal sign purchase deal
Jollibee to complete purchase by November 22
Nov 17, 2010 13:00 pm
Signed, sealed, and delivered.
Jollibee Foods Corp. has officially acquired 70 percent of Mang Inasal restaurant chain after the quick service restaurant giant and Injap Investments, Inc. signed a share purchase agreement last Monday, the company told the Philippine Stock Exchange. [Read how Mang Inasal started his now multi-billion peso business here]
Besides the initial payment of P200 million, JFC also gave Injap Investments of an additional payment of P1.350 billion in cash during the agreement signing. The completion of the acquisition will be on November 22 with the payment of an additional P1.150 billion. The remaining P300 million will be withheld and paid over the next three years as assurance for indemnification against the seller’s representations and warranties.
“Mang Inasal has successfully grown the grilled chicken in the Filipino cuisine segment of the fast food industry. It has been the fastest growing network in the Philippine food service business in the last three years behind very good tasting food, excellent value, and focused branding,” said Tony Tan Caktiong, JFC chair and chief executive officer. [Read about the value of doing business the 'Jollibee' way here]
At present, Mang Inasal has 312 stores nationwide, of which 28 are company owned and 284 franchised stores. The grilled chicken restaurant is expected to have 340 stores by the end of the year.
“With JFC’s scale and resources, Mang Inasal will be able to secure even better store locations, more franchisees, lower cost of raw materials and supplies, and better management systems and technology. I also look forward to bringing Mang Inasal to our fellow Filipinos in the United States and other foreign countries as part of JFC’s rapid expansion abroad,” Edgar Injap Sia III, chairman and founder of the Mang Inasal brand, said. [Read how the acquisition of Mang Inasal started here]
Mang Inasal is expected to contribute at least five percent to the worldwide system wide sales of JFC, five percent to its revenues, and seven percent to its net operating income.
Other brands under the JFC group include its flagship brand, Jollibee, Chowking, Red Ribbon, Greenwich, and Manong Pepe’s. The group also owns restaurant chains in China such as Yonghe King and Hong Zhuang Yuan.
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