The owner of Burger King and Tim Hortons, Restaurant Brands International, is buying Popeyes Louisiana Kitchen for $79 per share, or $1.8 billion. "Popeyes is a powerful brand with a rich Louisiana heritage that resonates with guests around the world," ...
The owner of Burger King and Tim Hortons, Restaurant Brands
International, is buying Popeyes
Louisiana Kitchen for $79 per share, or $1.8 billion.
"Popeyes is a powerful brand with a rich Louisiana heritage that
resonates with guests around the world," Restaurant Brands
International CEO Daniel Schwartz said in a statement. "With this
transaction, RBI is adding a brand that has a distinctive
position within a compelling segment and strong US and
international prospects for growth."
The offer price represents a 27% premium. The deal will be
financed with cash and a loan from JPMorgan and Wells Fargo.
Restaurant Brands International is a Canadian multinational
that was formed when
Burger King merged with Tim Hortons in 2014.
It is majority-owned by the Brazilian private-equity firm 3G
Capital, led by the billionaire Jorge Paulo Lemann. The firm is
also heavily invested in Kraft Heinz, which last week
attempted to merge with Unilever.
Here's the full press release:
OAKVILLE, ON, and ATLANTA, GA, Feb. 21, 2017 /PRNewswire/ —
Restaurant Brands International Inc. ("RBI") (NYSE/TSX: QSR, TSX:
QSP) and Popeyes Louisiana Kitchen, Inc. ("Popeyes") (NASDAQ:
PLKI) announced today that the companies have reached an
agreement for RBI to acquire Popeyes for $79.00 per share in
cash, or $1.8 billion.
The acquisition of Popeyes will add a successful, highly regarded
brand with strong customer loyalty to RBI, one of the largest
global quick service restaurant companies with two of the world's
most iconic QSR brands — Burger King and Tim Hortons.
Founded in New Orleans in 1972, Popeyes has 45 years of history
and culinary tradition and is the franchisor and operator of
Popeyes restaurants. Today Popeyes is one of the world's largest
quick service restaurant chicken concepts with over 2,600
restaurants in the U.S. and 25 other countries around the world
and its global footprint will complement RBI's existing portfolio
of over 20,000 restaurants in more than 100 countries and U.S.
Following the closing of the transaction, Popeyes will continue
to be managed independently in the U.S., while benefitting from
the global scale and resources of RBI. Building on the momentum
of recent years, RBI plans to continue developing the brand at an
increasing pace in the U.S. and international markets in the
years to come.
Daniel Schwartz, chief executive officer of RBI, said, "Popeyes
is a powerful brand with a rich Louisiana heritage that resonates
with guests around the world. With this transaction, RBI is
adding a brand that has a distinctive position within a
compelling segment and strong U.S. and international prospects
for growth. As Popeyes becomes part of the RBI family we believe
we can deliver growth and opportunities for all of our
stakeholders including our valued employees and franchisees. We
look forward to taking an already very strong brand and
accelerating its pace of growth and opening new restaurants in
the U.S. and around the world."
Cheryl Bachelder, chief executive officer of Popeyes, said, "I am
proud of the superior results the Popeyes team has delivered in
recent years; they have served all stakeholders well. As Popeyes
enters its 45th year, its success reflects the amazing brand
entrusted to us by founder Al Copeland Sr. and the unique high
trust partnership that we enjoy with our franchise owners. RBI
has observed our success and seen the opportunity for exceptional
future unit growth in the U.S. and around the world. The result
is a transaction that delivers immediate and certain value to the
Structure and terms
Under the terms of the transaction, Popeyes shareholders will
receive $79.00 in cash per share at closing. This represents a
premium of 27% based on Popeyes' 30-trading day Volume Weighted
Average Price as of February 10, the last trading day before
media speculation on the potential sale of Popeyes.
RBI will finance the transaction with cash on hand and a
financing commitment from J.P. Morgan and Wells Fargo.
The transaction is subject to customary closing conditions,
including receipt of certain regulatory approvals and receipt of
a majority of Popeyes shares on a fully diluted basis in a tender
offer to Popeyes' shareholders. Following the successful
completion of the tender offer, RBI will acquire all remaining
shares not tendered in the tender offer through a second-step
merger at the same price. The transaction is expected to close by
early April 2017.
SEE ALSO: The CEO of Popeyes says one of her biggest professional successes 'would not exist' if she hadn't been fired earlier in her career
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