Burger King to acquire Tim Hortons
Posted Aug 26, 2014 07:58:01 AM.
This article is more than 5 years old.
Tim Hortons and Burger King are joining forces to create the world’s third largest quick service restaurant company.
The agreement was announced this morning.
Tim Hortons shareholders will receive $65.50 in cash and 0.8025 common shares of the new company, the companies said in a statement. Private equity firm 3G Capital will own about 51 per cent of the new company.
“With approximately $23 billion in system sales, over 18,000 restaurants in 100 countries and two strong, thriving, independent brands, the new company will have an extensive international footprint and significant growth potential. The new global company will be based in Canada, the largest market of the combined company.”
The companies will continue to operate as independent brands. Tim Hortons will keep its headquarters in Oakville and Burger King will continue to be based out of Miami.
Marc Caira, President and CEO of Tim Hortons, said, “We are very proud of the great history of our organization and the progress we have achieved in creating value and delivering the ultimate experience for our guests. As an independent brand within the new company, this transaction will enable us to move more quickly and efficiently to bring Tim Hortons iconic Canadian brand to a new global customer base. At the same time, our customers, employees, franchisees and fellow Canadians can all rest assured that Tim Hortons will still be Tim Hortons following this transaction, including our core values, employee and franchisee relationships, community support and fresh coffee.”
The agreement was unanimously approved by the board of directors of both companies.
A news conference is planned for 11:30am.
