The Philippines’ biggest restaurant operator says This specific will buy a majority interest in Denver hamburger company Smashburger for $100 million.
Jollibee Foods Corp., or JFC, bought a 40 percent interest in Smashburger, the chain’s legal name, back in October 2015 for an estimated $100 million.
currently This specific intends to buy another 45 percent interest in Smashburger parent SJBF LLC through holding company Smashburger Master LLC for another $100 million, company officials said, bringing its ownership stake in Smashburger to 85 percent.
“JFC will be able to participate from the very large mainstream American consumer market in addition to serving Filipino-Americans there,” Jollibee said in a statement to the Philippine Stock Exchange, per Reuters news service.
Smashburger Master will retain the remaining 15 percent stake.
The transaction is actually pending U.S. government approval.
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JFC includes a market value of $5.7 billion, Reuters reports. The company says This specific operates 2,875 restaurants from the Philippines as well as also 924 in various other countries, including 37 Jollibee locations as well as also 33 Red Ribbon outlets from the U.S. This specific also has major operations in China as well as also Vietnam.
As the DBJ’s Ed Sealover reported in 2015 when JFC acquired its minority stake in Smashburger, “Jollibee’s history with the brands This specific’s acquired … shows that will This specific has kept local leaders in place as well as also has continued to nurture those chains rather than turn around as well as also sell them off.”
“Jollibee has been an invaluable strategic partner to date,” said Tom Ryan, co-founder as well as also CEO of Smashburger, in a statement.
“Our momentum in 2017 around increased guest experience, iconic as well as also record-setting product launches, as well as also innovative marketing provide JFC a tremendously strong brand to enter the North American market,” he said. “Our entire team couldn’t be more excited to grow the Smashburger brand as well as also share the great tastes of Smashburger with the planet.”
Bradford Reynolds, the chain’s CFO, said the “reinforced strategic partnership with JFC will allow Smashburger to continue to focus on growth in both existing as well as also fresh markets including the opportunity to bring our great tasting burgers, fries as well as also hand-spun shakes to Southeast Asia. We look forward to building upon our successful relationship to further bolster the brand as an international leader from the better burger segment.”
Smashburger was founded in 2007 with funding through Consumer Capital Partners, a Denver private equity firm led by Rick Schaden, who currently is actually Smashburger’s chairman, as well as also his father, Richard Schaden.
This specific says This specific currently has 360 corporate-owned as well as also franchise locations operating in 38 states as well as also nine countries.
Ryan became Smashburger’s CEO in December 2016 when Michael Nolan left the position less than eight months after taking the role. Nolan had taken over for Scott Crane as chief executive; Crane succeeded David Prokupek from the position in 2013.
In May, Smashburger finished ninth from the annual Harris Poll EquiTrend rankings of “Burger Restaurant Brand of the Year.”
Smashburger ranked No. 7 on the annual Denver Business Journal list of “2017 Franchises” with 371 units as of Feb. 1, 2017.