Jollibee Foods Corp has acquired a majority stake of Milkshop International, operator of Taiwanese milk tea chain Milksha, through its subsidiary Jollibee Worldwide.
The acquisition deal, equivalent to 51 per cent ownership, is valued at approximately US$12.8 million. Meanwhile, one of the co-founders of Milkshop will retain the remaining 49 per cent.
“This gives JFC the opportunity to participate in this fast-growing beverage category and together with Milkshop’s Founder, grow the Milksha brand globally,” the Philippine multinational company said in a disclosure statement.
Founded in 2008, Milkshop International is primarily involved in the development, operations and franchising of specialty tea shops under the trade names Milkshop and Milksha (for international markets). Currently, the company operates more than 250 outlets, with 231 stores in Taiwan, four in Hong Kong, two in Melbourne, two in Vancouver and 12 in Singapore.
Despite the pandemic, the chain generated $47.7 million in system wide sales, higher than the year before when the sales amounted to $66.5 million.
“Milkshop is generating modest net income and positive earnings before interest, taxes and depreciation,” the company said.
JFC and its subsidiaries, Fresh N’ Famous Foods and Mang Inasal Philippines, now have the exclusive rights, through a licensing agreement with Milkshop, to sell and market products under the Milksha brand in their stores. Jollibee said Milksha products will be sold in Chowking stores soon.