The owner of Burger King and Tim Hortons franchises, Restaurant Brands International Inc, said Tuesday that it will be acquiring the Popeyes Louisiana Kitchen franchise for $1.8 billion cash.
The deal, a bet from an Ontario-based company Restaurant Brands, in order to use their international audience to bring Popeyes’ Louisiana fried chicken and biscuits global diners.
“Popeyes is a powerful brand with a rich Louisiana heritage that resonates with guests around the world,” said Restaurant Brands International’s CEO, Daniel Schwartz in a press release.
“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.”
Popeyes’ current shareholders will receive $79.00 USD for each and every share they now hold, which results in a 19.5% premium on the stock’s close Friday.
History and Sale
Popeyes, known to have famous fans such as R&B singer Beyoncé, was established 45 years ago as the Southern-inspired “Chicken on the Run” restaurant from New Orleans.
Since its founding, it had expanded into over 2,000 restaurants, 1,600 of them being in the US.
Restaurant Brands is a company formed recently in 2014, after 3G Capital’s Burger King obtained the famous Canadian doughnut and coffee franchise Tim Hortons Inc. for around $11 billion.
Leading Up To Purchase
Reuters said Monday they believed Restaurant Brands had been close to a deal regarding the sale of Popeyes, using people close to the matter as sources.
Restaurant Brands stated Tuesday that it will finance the purchase with cash in addition to a financing commitment through J.P. Morgan as well as Wells Fargo.
The multinational company had been advised by attorneys Paul, Weiss, Rifkind, Wharton and Garrison LLP.
Popeyes also received advice from the firms UBS and Genesis Capital LLC, as well as legal counseling from King & Spalding LLP.