JFC buys out partner in Greenwich

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JFC buys out partner in Greenwich
Posted: 2:14 AM Jan. 18, 2006
Elizabeth L. Sanchez
Inquirer

FAST FOOD GIANT JOLLIBEE FOODS CORP. said it had fully acquired Greenwich Pizza Corp. by buying out its partner in the quick-service pizza and pasta chain for P384 million.

In a statement sent to the Philippine Stock Exchange, Jollibee chair Tony Tan Caktiong said the move was in line with the group's strategy to acquire businesses or additional stakes in existing businesses for consolidation into its operations.

Jollibee bought the 20-percent stake of Green Foods Franchising Inc., raising the group's holdings in the fast food pizza chain to 100 percent.

"We have been very pleased with our partnership with Green Foods Franchising Inc. over the past 11 years, starting in 1994 when JFC acquired 80 percent of Greenwich Pizza Corp. This buyout, which was arrived at in terms satisfactory to both our partner and to JFC, will add sales and profit to and will facilitate in simplifying our operations," Tan Caktiong said in the statement.

In its financial report as of September, Jollibee said Greenwich's system-wide sales-a measure of all sales to consumers from both company-owned and franchised stores-grew 4.3 percent in the third quarter ending September. No figures were specified.

Jollibee chief finance officer Ysmael Baysa said Greenwich's total sales of P3.5 billion in 2004 contributed 10 percent to Jollibee's total system-wide sales for that year.

Also, Greenwich generated P2.7 billion in revenue and P131.9 million in net income in 2004.

As of Dec. 31, Greenwich runs a total of 239 stores, of which 128 are company-owned and 111 are under franchise agreements.

Tan Caktiong also said he was confident about the long-term prospect of the Greenwich brand.

"We have built a leading brand over these years. We are confident that this brand will continue to grow robustly in the future."

Baysa also said Jollibee yesterday paid Green Foods in cash.

Jollibee has been accumulating cash reserves for its expansion strategy.

Last October, Jollibee acquired full control of Red Ribbon Bakeshop for P1.8 billion.

In March 2004, it bought 85 percent of Chinese fast food Yonghe King for $11.5 million.

The Jollibee Group, the largest fast food chain in the country, operates a total of 1,429 stores in the country and in nine countries overseas.


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