Tim Hortons Owner Confirms $1.8B Acquisition of Popeyes
Restaurant Brands International Inc, owner of the Burger King and Tim Hortons fast-food chains, said on Tuesday it would acquire Popeyes Louisiana Kitchen for $1.8-billion in cash.
The deal is a bet by Oakville, Ont.-based Restaurant Brands that it can use its international reach to introduce Popeyes’ Louisiana-style fried chicken and buttermilk biscuits to more diners globally.
Popeyes shareholders will get $79.00 for each share they hold, a 19.5 per cent premium to the stock’s Friday close.
Popeyes, whose fans include pop singer Beyoncé, began 45 years ago as a Southern-fried “Chicken on the Run” restaurant in a New Orleans suburb. It has since expanded to more than 2,000 restaurants, of which 1,600 are in the United States.
Restaurant Brands was formed in 2014, when 3G Capital-backed Burger King acquired Canadian coffee and doughnut chain Tim Hortons Inc for $11-billion.