Restaurant Brands International (RBI) Inc. and Popeyes Louisiana Kitchen, Inc. announced on Tuesday that the companies have reached an agreement for RBI to acquire Popeyes for $1.8 billion. RBI is one of the largest global quick service restaurant companies with two of the world’s most iconic quick-service brands—Burger King and Tim Hortons.
Founded in New Orleans in 1972, Popeyes has 45 years of history and culinary tradition and is the franchisor and operator of Popeyes restaurants. Popeyes has over 2,600 restaurants in the United States and 25 other countries around the world. RBI’s existing portfolio includes over 20,000 restaurants in more than 100 countries and U.S. territories.
Following the closing of the transaction, Popeyes will continue to be managed independently in the United States. RBI plans to continue developing the brand at an increasing pace in the United States and international markets in the years to come.
“Popeyes is a powerful brand with a rich Louisiana heritage that resonates with guests around the world. 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,” said Daniel Schwartz, chief executive officer of RBI.
RBI will finance the transaction with cash on hand and a financing commitment from J.P. Morgan and Wells Fargo. The transaction is subject to customary closing conditions, including receipt of certain regulatory approvals and receipt of a majority of Popeyes shares on a fully diluted basis in a tender offer to Popeyes’ shareholders. The transaction is expected to close by early April 2017.
