Burger King Worldwide, the 6th biggest fast food chain, agreed to acquire Canadian Tim Hortons, the Canadian restaurant chain, for 11.4 Billion.
One of parts of the deal is the Burger King will move its home to Canada, where is the biggest market for combined company.Under the terms of the deal, Burger King will pay 65.50 Canadian dollars in cash and 0.8025 of own shares for each Tim Hortons share. That figure to about 94.05 dollars a share, or $85.78, according to Burger King’s closing price on Monday.Brazil investment firm 3G Capital, that controls Burger King, will gained majority stake of the combined company, with a 51 percent stake.Help with transaction financing will come from Berkshire Hathaway, which together already take over Heinz J. Comapny for in February 2013. Mr. Buffett will buy $3 Billion worth of preferred shares in new company, although investment terms were not disclose.
Burger King advisors were Lazard, JP Morgan, Wells Fargo and the law firms Kirkland & Ellis; Daves Ward Phillips & Vineberg; and Paul, Weiss, Rifkind, Wharton & Garrison.
Tim Hortons was advised by Citigroup, the Royal Bank of Canada and the law firms Wachtell, Lipton, Rosen & Katz and Osler, Hoskin & Harcourt.
Mr. Stakebay says:
This deal helps Burger king to expand its portfolio on baked goods, hot drinks and more recently bagels , which sells one out of every two in the Canadian food service industry.
The combined company will become the third largest fast food chain behind McDonald’s and KFC, which will have 18 000 restaurants in 100 countries and annual revenues about $23 Billion.
CEO of Burger King …………………….Daniel S. Schwartz…..2013-present…..US$4 770 787 (2013)
President and CEO of Tim Hortons………..Marc Caira ………. 2013-present…….C$3 434 060 (2013)
|BURGER KING||TIM HORTONS|
|Revenue||US$ 1.146 billion (2013)||CAD$ 3.255 Billion (2013)|
|Operating income||US$ 522.2 million (2013)||CAD$ 585.63 million (2013)|
|Profit||US$ 233.7 million (2013)||CAD$ 424.369 million (2013)|
|Total assets||US$ 5.828 billion (2013)||CAD$ 2.433 billion (2013)|
|Total Equity||US$ 1.516 billion (2013)||CAD$ 761.519 million(2013)|
|Employees||2420 (2013)||1800 (2013)|