Published: Wed, February 22, 2017
Economy | By Melissa Porter

Owner of Burger King, Tim Hortons to Buy Popeyes for $1800000000

Popeyes is being taken over by the owner of Burger King and Tim Hortons, the companies confirmed Tuesday, with the $1.8 billion deal expected to be completed by April.

Popeyes, a fast-growing 45-year-old chicken restaurant, has more than 2,600 eateries in the US and 25 countries around the world.

With about 2,000 USA locations, Popeyes is the country's second-largest fried chicken chain.

Popeyes preferred Restaurant Brands' all-cash offer because Roark's bid was seen as having a higher execution risk, the people said.

Chief Executive Officer Cheryl Bachelder has improved relationships with franchisees, sped up service times and played up the brand's New Orleans heritage with foods such as Magnolia Blossom Chicken. "With this transaction, RBI is adding a brand that has a distinctive position within a compelling segment and strong US and global prospects for growth", said Restaurant Brands CEO Daniel Schwartz in a press release.

Restaurant Brands International Inc's, the owner of Burger King and Tim Hortons, will be using cash on hand and funds from a commitment for the deal. The company is known for its Southern-inspired menu, featuring fried chicken and seafood.

Restaurant Brands said it would seek to "continue developing the brand at an increasing pace" in the US and foreign markets. RBI's per-share purchase price is a 27 percent increase of the 30-day average of the Popeyes stock price.

The S&P/TSX composite index jumped 83.74 points at 15,922.37, as shares in Canadian multinational fast-food company Restaurant Brands International (TSX:QSR) soared seven per cent at the close.

Paul, Weiss, Rifkind, Wharton and Garrison LLP advised RBI in the transaction.

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