Burger King To Merge With Tim Hortons

Sept. 15, 2014
$11.5 billion deal will create the world's third largest quick-serve restaurant company.

In late August, Burger King Worldwide announced a deal to acquire the Canadian coffee-and-donut chain Tim Hortons in a cash and stock deal worth $11.5 billion.

The merger will create the world's third largest quick-serve restaurant company, "a new global powerhouse in the quick service restaurant sector," a company announcement stated, "with approximately $23 billion in system sales, over 18,000 restaurants in 100 countries and two strong, thriving, independent brands."

While Burger King is publicly held, 3G Capital, an investment firm that grew out of Argentina, owns approximately 70 percent of the shares. 3G bought the hamburger chain in 2010, returning it to public hands in mid-2012.

Burger King will continue to own majority shares (51 percent) of the new company. The new company will be listed on the Toronto Stock Exchange, as well as on the New York Stock Exchange.

Warren Buffett and his investment firm Berkshire Hathaway reportedly are providing a quarter of the funding by taking preferred stock in the combined company. Berkshire Hathaway and 3G capital combined to buy H.J. Heinz Co. last year.

Known for its coffee and doughnuts, Tim Hortons is Canada's largest fast food service with 4,546 system-wide restaurants spread mainly across Canada and the U.S.

The transaction is subject to customary closing conditions, including approval of Tim Hortons shareholders and receipt of certain antitrust and regulatory approvals in Canada and the U.S. Boards of directors of both firms already have approved the deal.

Sponsored Recommendations

Revolutionizing Healthcare: The Impact of Digitalization in Biopharma Innovation

Biopharma enables an entirely new level of innovation that’s simply not possible in conventional drug development. It’s an approach that can fundamentally change the way healthcare...

Navigating the Automotive Industry's Electric Future

The automotive industry is at a turning point. Bloomberg estimates that by 2040, 54% of new vehicle sales will be electric. And by 2030, we’re looking at 100% of passenger vehicles...

Unified Process Control Brings Operational Clarity

Inland Empire Utilities Agency replaces its SCADA enterprise system with the PlantPAx Distributed Control System and reduces complexity for operators

PlantPAx DCS Improves Operational Reliability

KC Water calls on R.E. Pedrotti to replace obsolete wastewater SCADA solution with a unified Modern Distributed Control System (DCS).