OAKVILLE, Ont. — Restaurant Brands Inc. (RBI) has announced plans to acquire Popeyes Louisiana Kitchen, Inc. for $79 per share in cash or $1.8 billion.
The acquisition will add a successful and highly regarded brand to RBI’s roster of iconic QSR brands, which currently includes Burger King and Tim Horton’s. Popeyes was founded in New Orleans in 1972 and since then, has built a history of franchise excellence. As one of the world’s largest QSR chicken concepts, Popeyes currently boasts more than 2,600 restaurants across 25 countries.
Once the transaction has closed, Popeyes will continue to be managed independently in the U.S., with the benefit of RBI’s global resources. RBI plans to increase the brand’s footprint across the U.S. and international markets.
“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. As Popeyes becomes part of the RBI family, we believe we can deliver growth and opportunities for all of our stakeholders, including our valued employees and franchisees. We look forward to taking an already very strong brand and accelerating its pace of growth and opening new restaurants in the U.S. and around the world.”
Under the terms of the transaction, Popeyes shareholders will receive $79 in cash per share at closing, which represents a premium of 27 per cent on the company’s 30-trading-day Volume Weighted Average Price, as of Feb. 10. RBI will back the transaction with on-hand cash and financing through J.P. Morgan and Wells Fargo. The transaction is subject to customary closing conditions, including receipt of regulatory approvals. The transaction is expected to close by early April, 2017.