Max’s seals acquisition of Pancake House

MANILA, Philippines - The Max’s Group, led by the Fuentebella family, has completed the purchase of Pancake House in a P3.5-billion transaction, making it one of the country’s biggest full-service and family-style dining restaurant chains with a combined network of more than 450 stores.

In a statement, Max’s said it acquired a total of 89.95 percent stake in Pancake House, equivalent to 233.16 million shares after minority shareholders tendered their shares before the offer deadline.

The tender offer involved 39.98 million Pancake House shares. 

The shares were acquired for P15 apiece, the same price per share that Max’s has agreed to pay the majority shareholders for the acquisition of 193.18 million Pancake House shares.

The acquisition brings together two of the Philippines’ largest and historically successful heritage brands that share a long history of brand recognition and innovation, customer loyalty and proven track records for expansion.

Max’s president Robert Trota said Pancake House would remain as a listed company despite the entry of a new shareholder group.

The group led by the Fuentebella family is also the master franchisee of US-based coffee and doughnut brand Krispy Kreme in the Philippines.

“The Max’s Group is extremely excited about having completed another historic milestone in the Philippine restaurant industry. We appreciate everyone’s enthusiasm for what we can do to build our casual dining brands together, execute a business strategy that delivers consistently high quality food with exceptional customer service.  Together, we look forward to growing our businesses in the Philippines and globally,” said Trota, who is Pancake House’s new president and CEO.

BPI Capital Corp. served as the exclusive financial adviser to the Max’s Group for this transaction.

 â€œWe are honored to have helped the Max’s Group execute this transformational transaction.  The Group has a formidable array of brands with loyal followers and the ability to grow value by capitalizing on the strengths of the combined businesses,” said Bank of the Philippine Islands president Cezar Consing.

Founded in 1974, the Pancake House group owns 105 outlets of flagship brand Pancake House and over 300 stores across other brands which include Yellow Cab, Le Coeur De France, Maple, Dencio’s, Kabisera ng Dencios, Teriyaki Boy, Sizzlin Pepper Steak and the Chicken Rice Shop.

The Max’s Group, on the other hand, was established in 1945 and now has over 150 stores in and outside the Philippines. Aside from the Fuentebellas, the group also comprises the Trota and San Victores families.

Apart from its flagship chicken restaurant Max’s, it also brought US-based coffee and doughnut brand Krispy Kreme and California-based smoothie chain Jamba Juice to the Philippines.

Prior to the acquisition, the Pancake House Group led by businessman Martin Lorenzo, chalked up revenues of P2.7 billion  with system-wide sales hitting P3.2 billion in the nine months ended September 30 last year.