In mid-October, quick casual concept Smashburger announced that it has entered into a definitive agreement to sell 40 percent of the company to Jollibee Foods Corp., Asia’s largest restaurant company. The purchase price values Smashburger at a $335-million enterprise value.  The Denver-based Smashburger has over 335 corporate and franchised restaurants operating in 35 states and seven countries. Approximately 60 percent of Smashburger is company owned and operated. Smashburger continues to grow at a rate of 20 percent annually. Based in the Philippines, Jollibee Foods Corp. is a publicly-traded restaurant group that has been actively seeking an investment in a U.S. growth brand. Presently Jollibee operates and franchises a network of over 3000 restaurants worldwide under the trade names Jollibee, Chowking, Greenwich, Red Ribbon, Yonghe King, Hong Zhuang Yuan, Mang Inasal, Burger King Philippines, San Pin Wang, Jinja Bar. Jollibee also has a 50 percent interest in the Super Foods Group, which operates and franchises restaurants under the Pho 24 and Highlands Coffee brands throughout Vietnam. In a statement, JFC Chairman Tony Tan Caktiong said, “Smashburger is one of the fastest growing restaurant brands in the U.S. and we are very excited to work side by side with the owners and management of Smashburger as we continue its growth. This acquisition will make JFC’s presence in the U.S. more significant, going beyond the Filipino market and serving mainstream consumers in the $100-billion U.S. burger market, a food segment which is estimated to be almost three times larger than the pizza, sandwich or coffee segment in terms of sales. This acquisition will make the U.S. one of JFC’s most important markets and drivers of long term growth along with the Philippines, China and other Asian markets abroad.”  Scott Crane, President, CEO of Smashburger noted, “This partnership will provide additional energy and resources to Smashburger as we expand.” Smashburger was counseled by North Point Advisors as financial advisor and Paul, Weiss, Rifkind, Wharton & Garrison as legal and JFC was advised by J.P. Morgan as financial advisor, Pillsbury Winthrop Shaw Pittman LLP as legal advisor, and Isla Lipana & Co./PwC as accounting and tax advisor in this transaction.

Smashburger - 3900 East Mexico Ave., Suite 1200, Denver, Colorado  80210 (303/633-1500 www.smashburger.com)
Jollibee Foods Corp - 10/F Jollibee Plaza Building, No. 10 F. Ortigas Jr. Ave., Ortigas Center, Pasig City, Philippines 1605 (Tel: 632/634-1111, Fax: 632/633-9504. www.jollibee.com.ph)