OAKVILLE, Ont. — Tim Hortons and Burger King have confirmed that they have reached a definitive agreement to join forces to create a new global “powerhouse” restaurant company.
A day after the two chains confirmed they were in talks to potentially merge, Tim Hortons released a statement that the two plan to forge ahead, creating a new company that combines 18,000 restaurants in 100 countries, totalling $23 billion in system sales. 3G Capital, based in New York and Rio de Janeiro, will own a 51-per-cent stake in the company, with the balance of the common shares to be held by current public shareholders of Burger King and Tim Hortons.
This transaction allows Tims to broaden its global reach, said its CEO. “We are very proud of the great history of our organization and the progress we have achieved in creating value and delivering the ultimate experience for our guests. As an independent brand within the new company, this transaction will enable us to move more quickly and efficiently to bring Tim Hortons iconic Canadian brand to a new global customer base,” said Marc Caira, president and CEO of Tim Hortons.
Alex Behring, executive chairman of Burger King and managing partner at 3G Capital, will helm the new company as executive chairman and director, while Marc Caira will be vice-chairman and director. Meanwhile, Burger King CEO Daniel Schwartz will become group CEO of the new company. Caira and Schwartz will continue as CEOs of their respective brands while the company transitions.