Parent Company of Burger King Acquires Popeyes for $1.8 Billion

by Katie Lee

Atlanta — Restaurant Brands International Inc. (RBI) has agreed to acquire Atlanta-based Popeyes Louisiana Kitchen Inc. for $1.8 billion.

Ontario, Canada-based RBI is the parent company of fast food giants Burger King and Tim Hortons. The company owns a portfolio of over 20,000 restaurants throughout the world. Popeyes will continue to be managed independently in the U.S. following the close of the transaction, which is slated for April of this year.

RBI plans to expand the Popeyes brand at an increasing pace in both the U.S. and international markets over the next few years. The concept, founded in New Orleans in 1972, has over 2,600 restaurants in the U.S. and 25 other countries.

“Popeyes is a powerful brand with a rich Louisiana heritage that resonates with guests around the world,” says Daniel Schwartz, CEO of RBI. “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.”

Under the terms of the transaction, Popeyes shareholders will receive $79 per share in cash at closing. Following the successful completion of the tender offer, RBI will acquire all remaining shares through a second-step merger at the same price.

RBI will finance the transaction with cash on hand, along with financing commitments from J.P. Morgan and Wells Fargo.

Paul, Weiss, Rifkind, Wharton and Garrison LLP advised RBI in the transaction. Popeyes received financial advice from UBS and Genesis Capital LLC, and legal counsel from King & Spalding LLP.

Katie Sloan

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