Popeyes chicken brand bought by Burger King, Tim Hortons parent company
- Author: Zachary Reyes Feb 21, 2017,
Feb 21, 2017, 17:43
The company's managers have long said they would consider taking over other brands, where they could boost profit by cutting costs and selling locations to franchisees. Restaurant Brands is the company that owns both Burger King and Tim Horton.
Popeyes, which has more than 2,600 restaurants in the US and 25 other countries, has performed well lately, with the stock gaining for eight years in a row. Restaurant Brands did not respond immediately to a request for comment, while Popeyes decline to comment.
The parent company of Miami-based fast food giant Burger King announced Tuesday a massive merger to purchase another popular chain. Restaurant Brands said it would seek to "continue developing the brand at an increasing pace" in the US and foreign markets. RBI's management is expected to continue to operate the USA business. "We look forward to taking an already very strong brand and accelerating its pace of growth and opening new restaurants in the USA and around the world". RBI has observed our success and seen the opportunity for exceptional future unit growth in the USA and around the world. The deal gives Popeyes shareholders $79 per share, representing a 19 percent premium from its closing price on Friday.
The transaction is being paid for with cash on hand and a financing commitment from JPMorgan Chase & Co. and Wells Fargo & Co.
The proposed takeover requires various approvals and support from more than half of Popeyes' shareholders, but RBI expects the deal to close by early April.