Jollibee buys domestic food chain - ResearchInChina
Date:2007-09-24
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The Philippines' Jollibee Foods Corp Friday agreed to buy China's Hongzhuangyuan restaurant chain for US$50.5 million as it further taps the country's rapidly growing catering industry.
The deal marked the time Jollibee has purchased a Chinese rival to accelerate its development in China, joining a handful of overseas fast-food retailers competing in the 180-billion-yuan (US$24 billion) market.
The Philippines' biggest fast-food company is expected to buy all 33 outlets of Beijing-based Hongzhuangyuan, according to a statement filed with the Philippine stock exchange.
The acquisition, to be completed within a year, will be financed from Jollibee's existing funds.
The Hongzhuangyuan restaurant chain serves a variety of Chinese food centered around congee. Most of its stores are located in Beijing. The network will be expanded to 38 stores nationwide, company officials said.
Privately owned Hongzhuangyuan is forecast to generate US$24 million in sales this year.
Jollibee acquired an 85-percent stake in Yonghe King for US$22.5 million in 2004 as it first bite into the Chinese market. It purchased the remaining stake for US$6 million in the first half of this year.
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