TORONTO, Ontario – Happy Belly Food Group Inc., a leading consolidator of emerging food brands is happy to announce that it has closes, as of January 27th, 2025, its 100% acquisition of Smile Tiger Coffee Roasters Inc (“Smile Tiger”), serving rich, bold blends bringing customers an exceptional coffee experience, roasted to perfection and tailored to delight even the most discerning coffee enthusiasts. This marks Happy Belly’s first acquisition in the coffee sector.
“Today marks a significant milestone for Happy Belly Food Group as we officially close on the 100% acquisition of Smile Tiger Coffee Roasters,” said Sean Black, Chief Executive Officer of Happy Belly. “Kicking off 2025 with the signing of a definitive agreement with Smile Tiger and successfully closing the acquisition within just three weeks is a testament to the expertise and efficiency of our team.”
“This acquisition represents a major step forward in our mission to become a leading consolidator of emerging food brands. Smile Tiger now becomes our 11th brand overall and our 9th quick-service restaurant (QSR) brand, introducing an exciting new category into our roll-up strategy. This addition not only broadens our portfolio but also strengthens our position as a key player in the food and beverage industry.”
“Entering the coffee, tea, energy drink and bubble tea beverage category had been a goal we explored for some time, and acquiring Smile Tiger has marked a significant step forward for Happy Belly. As we executed our consolidation strategy focused on the 3 P’s-People, Product, and Process-this acquisition represented an exciting entry into a category with great potential for sector consolidation and menu innovation. This milestone further underscored our commitment to creating shareholder value across our portfolio. Our disciplined approach to organic growth, coupled with accretive M&A, continues to drive our success. Acquiring cash-flow-positive brands that are debt-free and demonstrate positive same-store sales aligns with our low-risk strategy for delivering consistent returns.”
“Post-acquisition, our focus remains on maximizing the brand’s potential. Our track record speaks for itself-whether with Heal Wellness, iQ Foods, Via Cibo, Rosie’s Burgers, or Yolks Breakfast, we have consistently proven our ability to acquire high-potential assets at reasonable multiples and rapidly expand their EBITDA. Smile Tiger is no exception. This acquisition exemplifies our ability to identify and integrate strong-performing brands, setting them up for even greater success under our operational framework. We look forward to sharing development plans and forward opportunities this category presents.”
“Smile Tiger’s coffee roasting capabilities, including consumer-packaged goods (CPG) and white-label products, provide large-scale commerce opportunities and enable us to supply our own brands nationwide. This strategic advantage, combined with delivering exceptional coffee and outstanding service, positions us to capitalize on the growing demand in the coffee, tea, bubble tea, energy drink, and refresher markets-categories transforming the beverage industry across North America. With a diverse portfolio of breakfast, lunch, and dinner concepts, Happy Belly consumes significant amounts of coffee, which represents a substantial growth opportunity for 2025.”
Acquisition Details
Happy Belly and Smile Tiger Coffee Roasters have signed a definitive acquisition agreement for the 100% acquisition of Smile Tiger Coffee Roasters by Happy Belly. Happy Belly has satisfied the purchase price of $250,000 CDN for this acquisition by way of paying $125,000 CDN in cash together with issuing 104,000 common shares of Happy Belly equal in value to $125,000 (based on a 10-day VWAP) at time of closing. This represents an estimated purchase price of 3.3x EBITDA based on 2024 sales of north of $1,000,000.