Burger King has confirmed a deal to create the third-largest fast-food company in the world worth over €28bn. It is joining up with the Canadian coffee and doughnut chain Tim Hortons, but both will carry on operating as separate brands.
Their combined resources would see more than 18,000 restaurants in 100 countries.
Tim Hortons and Burger King each have franchisee networks. Under the terms of the deal, each brand will be managed independently.
The transaction, which has been unanimously approved by the board of directors of both companies, will see Tim Hortons shareholders receive C$65.50 (€45.28) in cash and 0.8025 common shares of the new company per Tim Hortons share.
Based on Burger King's closing stock price as of August 25th, this represents total value per Tim Hortons share of C$94.05 (€65.02).
Executive Chairman of Burger King, Alex Behring, said "By bringing together our two iconic companies under common ownership, we are creating a global QSR powerhouse."
"Our combined size, international footprint and industry-leading growth trajectory will deliver superb value and opportunity for both Burger King and Tim Hortons shareholders, our dedicated employees, strong franchisees, and partners."
Marc Caira, president and CEO of Tim Hortons, said, "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."
Burger King is the second largest fast food hamburger chain in the world, and operates in approximately 14,000 locations serving more than 11 million people daily in 98 countries and territories.
Tim Hortons is one of the largest publicly-traded restaurant chains in North America, based on market capitalization, and the largest in Canada. The chain sells coffee, hot and cold drinks, specialty teas and fresh baked goods.
As of June 29th, it had 4,546 restaurants - including 3,630 in Canada and 866 in the United States.
