Core Viewpoint - Happy Belly Food Group Inc. has successfully completed the 100% acquisition of Smile Tiger Coffee Roasters, marking its first entry into the coffee sector and expanding its portfolio of emerging food brands [1][2]. Acquisition Details - The acquisition was finalized on January 27, 2025, with a purchase price of 125,000 CAD in cash and 104,000 common shares valued at 1,000,000 CAD [5]. Strategic Importance - The acquisition of Smile Tiger Coffee Roasters represents a significant step in Happy Belly's strategy to consolidate emerging food brands, now bringing the total number of brands to 11 and quick-service restaurant brands to 9 [2]. - The entry into the coffee, tea, energy drink, and bubble tea categories aligns with the company's goal of sector consolidation and menu innovation, enhancing its position in the food and beverage industry [2][4]. Operational Focus - Post-acquisition, the company aims to maximize Smile Tiger's brand potential, leveraging its operational framework to expand EBITDA and integrate strong-performing brands [3]. - Smile Tiger's capabilities in coffee roasting and consumer-packaged goods provide opportunities for large-scale commerce and nationwide supply of its brands, capitalizing on the growing demand in the beverage market [4]. Company Background - Happy Belly Food Group Inc. is recognized as a leading consolidator of emerging food brands, focusing on organic growth and accretive mergers and acquisitions to drive shareholder value [2][8].
Happy Belly Closes 100% Acquisition of Smile Tiger Coffee Roasters Inc