Tim Hortons and Burger King to join forces to form a new company
OAKVILLE, Ont. - Canada's iconic coffee chain Tim Hortons (TSX:THI) and Miami-based Burger King say they will join forces, but will operate as independent brands to form the world's third-largest quick service restaurant company.
The new global company will have about $23 billion in sales and more than 18,000 restaurants in 100 countries, allowing both chains to expand globally.
It will be based in Canada, the largest market of the combined company.
Oakville, Ont., will remain the global home of Tim Hortons and Miami will remain global home of Burger King.
Private equity firm 3G Capital will own about 51 per cent of the new company.
Under the terms of the transaction, Tim Hortons shareholders will receive C$65.50 in cash and 0.8025 common shares of the new company. Based on Burger King's unaffected closing stock price as of August 22, this represents total value per Tim Hortons share of C$89.32, and based on Burger King's closing stock price as of Aug. 25, this represents total value per Tim Hortons share of C$94.05