Philippine fastfood firm Jollibee Foods Corp will acquire a majority stake in privately held Compose Coffee, a South Korean coffee chain, as part of a deal valuing the target at $340 million, the company said on Tuesday.

Jollibee's unit Jollibee Worldwide Pte will acquire 70% of Compose Coffee and its majority-owned Titan Fund will take 5%, the fast-food firm said in a disclosure. The remaining 25% will be held by private-equity firm Elevation, it said.

Compose Coffee has 2,470 stores, all franchised, giving it a debt-free balance sheet, and good cash returns and profitability margins, said Jollibee, which will increase its global store network to 10,000 with the deal

 - Reuters