Coffee-shop chain Broadway has bought out all 23 coffee shops of rival chain S11, doubling the number of its branches, according to Chinese-language evening paper Shin Min Daily News yesterday.
The acquisition is estimated to cost $200 million, making it the largest purchase of its kind for a coffee-shop chain to date, the paper said, quoting industry sources.
Broadway posted an announcement in Chinese-language daily Lianhe Zaobao yesterday, saying that the group will acquire S11's 23 coffee-shop branches - including S11's first one in Bishan Street 11 - in the first quarter of this year.
"We will renew the good brand established by S11 over the past 24 years," the announcement said in Chinese.
"We will continue to provide the public with delicious, economical and quality food and drinks."
The branches that Broadway has acquired include those at Block 304, Woodlands Street 31; Block 34, Upper Cross Street and Block 640, Bukit Batok Central.
Broadway and S11 are among some of the big names in coffee-shop operators here in Singapore, along with the likes of Chang Cheng Group, Kimly Group and Kopitiam Group. It is unlikely that customers will see any drastic changes to the stalls at the coffee shops, said Mr Hong Poh Hin, chairman of the Foochow Coffee Restaurant and Bar Merchants Association.
Both Broadway and S11 did not respond to queries for comments.
It is understood that the existing coffee shops under S11 will retain the S11 name.
The takeover of all the coffee shops is expected to be done within three months.
Broadway, which opened in 1997 with a coffee shop at Block 414, Yishun Ring Road, currently has 22 outlets, according to its website.
Broadway and S11 are among some of the big names in coffee-shop operators here in Singapore, along with the likes of Chang Cheng Group, Kimly Group and Kopitiam Group.
It is unlikely that customers will see any drastic changes to the stalls at the coffee shops, said Mr Hong Poh Hin, chairman of the Foochow Coffee Restaurant and Bar Merchants Association.
"Broadway will take over the business as it is, so the existing stalls should all stay there," he said.
Customers are also unlikely to see any price changes after the change in ownership - at least in the early stages.
"I think, at the start, prices should be quite stable and stay as they are," said Mr Hong, whose association represents more than 400 coffee shops.
"But later on, if the new management wants to upgrade or renovate the coffee shops, then it's another matter.
"If they put in more investment, their rental prices might go higher," added Mr Hong.
According to Shin Min, Broadway has more than 700 employees, which will grow to over a thousand with the acquisition of S11.
The sale of S11 to Broadway is the latest in a series of coffee-shop sales with record-breaking prices.
In 2015, Yong Xing Coffee Shop in Bukit Batok was sold for a record $31 million - the biggest sale of a single coffee shop.