Smashburger, the Denver-based Fast Casual restaurant concept, today announced that it has entered into a definitive agreement to sell 40% of the company to Jollibee Foods Corporation (PSE:JFC), Asia’s largest restaurant company. The purchase price values Smashburger at a $335 million enterprise value.
Launched in 2007, Smashburger has over 335 corporate and franchised restaurants operating in 35 states and seven countries. Approximately 60% of Smashburger is company owned and operated. Smashburger continues to grow at a rate of 20% annually.
Jollibee Foods Corporation, a publicly-traded market leader in the Philippines, has been actively seeking an investment in a leading U.S. growth brand. Jollibee Foods Corporation currently operates and franchises a network of over 3,000 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% interest in the Super Foods Group, which operates and franchises restaurants under the Pho 24 and Highlands Coffee brands throughout Vietnam.
“We at Smashburger are excited about our new strategic partnership with Jollibee,” commented Rick Schaden, Chairman and Co-Founder of Smashburger. “As founders and entrepreneurs we both have built teams that focus on bringing the highest quality and best tasting food to our restaurant categories. Founder and Chairman, Tony Tan Caktiong and I share a true passion for the restaurant business having opened and operated our very first restaurants, we believe our companies still cultivate that spirit today as we initiate this partnership.”
JFC Chairman Mr. Tony Tan Caktiong gave the following statement: “Smashburger is one of the fastest growing restaurant brands in the US 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 US more significant, going beyond the Filipino market and serving mainstream consumers in the $100 billion US 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 US one of JFC’s most important markets and drivers of long term growth along with the Philippines, China and other Asian markets abroad.”
“This partnership will provide additional energy and resources to Smashburger as we expand,” said Scott Crane, President and CEO, of Smashburger. “The team at Jollibee is focused on the same values as our company, which are to serve the highest quality food and provide a great dining experience for our guests.”
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.