Jollibee foods corporation said Wednesday that it will buy out its partner in Happy Bee Foods Processing for $10.4 million to ensure the quality and safety of its restaurant chains in China.
Jollibee, now the largest food service enterprise in Asia agreed to buy Hua Xia Harvest Holdings’ 30% stake in Happy Bee Foods Processing.
With this acquisition, Jollibee Worldwide Pte. Ltd. will now own 100 percent of Happy Bee, which in turn owns 100 percent of Happy Bee which has a factory in Anhui Province that makes food products for other restaurants, including Jollibee Foods’ Yonghe King, a Chinese-style fast-food chain in China.
“The objectives of the acquisition of the 30 percent ownership of Happy Bee, essentially an equity share and asset swap, are for JFC to concentrate on supporting the growth of its Yonghe King business and on further improving its food quality and increasing assurance on food safety,” the company said.
Jollibee foods corporation regards China, Philippines and the US as its key markets on becoming a global fast-food restaurant operator. However, China’s fast-food industry is often hit with safety issues that harm the sales of companies doing business in the country.