MANILA - Jollibee Food Corp said Thursday its unit would acquire the majority stake in Milkshop International Co Ltd in Taiwan for $12.8 million.
Jollibee Worldwide Pte Ltd will purchase shares in Milkshop International equivalent to 51 percent ownership, JFC said in a disclosure to the stock exchange.
The deal is subject to closing conditions and the final purchase price will be confirmed after closing, the country's largest restaurant operator said.
Milkshop is founded in Tainan City in Taiwan in 2008 and is involved in the development, operations and franchising of specialty tea shops with trade names Milkshop and Milksha, JFC said. Bubble tea originated in Taiwan in 1987, it said.
JFC said the brand is known for using only "high-quality milk" and natural ingredients and has over 250 outlets located in Taiwan, Hong Kong, Melbourne, Vancouver and Singapore.
Milkshop International posted system-wide sales of about $66.5 million in 2019 and $74.7 million in 2020, JFC said.
"This gives JFC the opportunity to participate in this fast-growing beverage category and together with Milkshop’s Founder, grow the Milksha brand globally," the company said.
Currently, JFC's subsidiaries Fresh N' Famous and Mang Inasal have "exclusive rights" to sell and market Milksha products in their stores. It will soon be sold in Chowking stores as well, JFC said.
The Jollibee Group aims to become among the world's top 5 restaurant operators. It currently has a network of 5,853 stores and 17 brands operating in 34 countries.