MANILA (UPDATE) -- Jollibee Foods Corporation is buying South Korean coffee brand Compose Coffee, the company disclosed to the stock market on Tuesday. 

The Philippine-based fast-food giant said Compose Coffee has over 2,000 franchised stores in South Korea, and is a leader in terms of brand satisfaction among Korean coffee brands.

In a statement, JFC said it is getting majority shareholding of effectively 70 percent in Compose Coffee.

The acquisition costs about $340 million, but is still subject to closing and financing conditions and a final purchase price.

Jollibee said the move is its gateway to "unlocking the fast-growing international value coffee market" in Seoul.

It also noted that Compose Coffee has a debt-free balance sheet, and good cash returns and profitability margins.

JFC Chairman Tony Tan Caktiong said Compose Coffee "is on track to becoming the largest, fastest growing and leading value coffee player in South Korea.” 

"Compose Coffee and its roasting facility JMCF Co. Ltd. were founded in Busan in 2014. It is one of South Korea’s leading coffee franchise in the fast-growing value coffee segment with 2,600+ stores in the country as of June 2024," Jollibee said. 

The brand was named South Korea’s favorite coffee shop at the 2023 Korea’s Most Loved Brand Awards, an event organized by Forbes Korea and sponsored by South Korea’s Ministry of Science and ICT and Ministry of Trade, Industry, and Energy, Jollibee said. 

"On its 10th year anniversary, Compose Coffee announced V (Kim Taehyung) of BTS as their new brand ambassador," Jollibee added.

Growing its coffee and tea business is one of Jollibee's goals for 2024. Jollibee also owns Coffee Bean and Tea Leaf (CBTL), and has an interest in Vietnamese brand Highlands Coffee.

It also brought Tiong Bahru Bakery and Common Man Coffee Roasters to the Philippines.

JFC says Tiong Bahru Bakery, Common Man Coffee Roasters won't compete with CBTL

RELATED VIDEO: