Would you like fries with your double-double? What’s been dubbed a “whopper deal” two iconic brands will join forces to create the world’s third largest quick service restaurant company.
Tim Horton’s based in Oakville Ontario and Burger King based in Miami will become a new global company with a much larger footprint in North America.
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. The new company will be based in Canada though Burger King will still call its global home Miami.
Private equity firm 3G Capital will own about 51 per cent of the new company.
Under the terms, Tim Horton shareholders will get $94.00 in cash and 0.8 common shares in the newly formed company. Making the offer about $94 Cnd a share
90 percent of the revenue Tim Hortons makes comes from it’s Canadian operations. In the U.S. Tim Hortons has struggled to gain market share with it’s 800 stores compared to 3,600 in Canada.
In Sault Ste. Marie Tim Hortons operates 6 stand alone outlets and several smaller outlets located in the hospital or gas bars.