Tim Hortons and Burger King owner, Restaurant Brands, nears understanding to buy Popeyes: report

Restaurant Brands International Inc. , owners of a Burger King and Tim Hortons fast-food chains, is impending a understanding to acquire Popeyes Louisiana Kitchen Inc., people informed with a matter pronounced on Monday.

The deal, that will expected value Popeyes during some-more than $1.7 billion US, is a gamble by Oakville, Ont,-based Restaurant Brands that it can use a general strech to deliver Popeyes’ Louisiana-style boiled duck and buttermilk biscuits to some-more diners globally.

It also represents a tiny satisfaction esteem for Restaurant Brands shareholder 3G Capital, that mislaid a $143 billion US bid this week to combine a biggest holding, food organisation Kraft Heinz Co, with consumer products organisation Unilever Plc.

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A understanding could be announced as early as this week, a people said, seeking not to be identified given a negotiations are confidential. Restaurant Brands did not respond immediately to a ask for comment, while Popeyes decrease to comment.

Popeyes, whose fans embody cocktail thespian Beyoncé, began 45 years ago as a Southern-fried “Chicken on a Run” grill in a New Orleans suburb. It has given stretched to some-more than 2,000 restaurants, of that 1,600 are in a United States.

The association has benefited from clever patron loyalty, as good as from a grill refurbishment program.

Chicken accounts for about 10 per cent of a fast-food industry, according to information use IBISWorld, and Popeyes’ marketplace share is growing. The largest brands in a zone embody secretly hold Chick-fil-A and Yum! Brands Inc’s KFC.

• Tim Hortons owners in bid to buy Popeyes: report

Private equity organisation 3G Capital, that is tranquil by Brazilian billionaire Jorge Paulo Lemann, owns about 43 per cent of a voting shares in Restaurant Brands. 3G Capital has done a name by appropriation vital U.S. consumer companies including Kraft Heinz.

Restaurant Brands was shaped in 2014, when 3G Capital-backed Burger King acquired Canadian coffee and doughnut sequence Tim Hortons Inc for $11 billion.

3G Capital’s long-time partner, Warren Buffett’s Berkshire Hathaway Inc, committed $3 billion of elite equity to financial that deal.

Article source: http://www.cbc.ca/news/business/restaurant-brands-popeyes-louisiana-near-deal-1.3991300?cmp=rss