Fast-food giant Jollibee Foods Corp. (JFC) has completed the acquisition of 100 percent of restaurant chain Hongzhuangyuan in Beijing, China.

 

In a statement, the company said it closed the transaction following the approval by the Ministry of Commerce of China and after the former owners of the restaurant chain complied with key conditions for the acquisition.

 

JFC, through its wholly-owned subsidiary Jollibee Worldwide Pte. Ltd., bought Hongzhuangyuan for RMB 379 million or P2.5 billion. Of the amount, RMB 246.4 million was already paid to the sellers while the remaining RMB 132.6 million will be paid within the next 12 months.

 

The purchase was funded by the $100-million proceeds from a loan facility agreement entered into by JFC with several financial institutions on September 8.

 

According to the company, the Hongzhuangyuan business is quite profitable, with an estimated annual sales of RMB 197 million or P1.3 billion for 2008. The food chain operates a total of 38 restaurants, of which 31 are company-owned and located in Beijing while seven are franchised stores situated in other cities.

 

The JFC group operates a total of 1,480 stores in the Philippines and 209 more overseas as of August 30, 2008. Among its brands are Jollibee, Chowking, Greenwich, Red Ribbon, Delifrance and Manong Pepe's.

 

On Thursday, it closed at P49.50 per share on the local bourse.