After a series of news of Burger King and Tim Hortons parent company wooing Louisiana-based chicken fast food chain Popeyes L Kitchen for a takeover bid, the latter company finally agrees to be acquired by Restaurant Brands International (RBI).
According to a news release published by RBI, the two companies reached an agreement to acquire Popeyes Kitchen for $79 per share in cash, or a total of $1.8 billion. This acquisition was in line with RBI’s target to expanding their product and service offer across the globe.
“Popeyes is a powerful brand with a rich Louisiana heritage that resonates with guests around the world. With this transaction, RBI is adding a brand that has a distinctive position within a compelling segment and strong US and international prospects for growth,” said RBI CEO Daniel Schwartz. “As Popeyes becomes part of the RBI family we believe we can deliver growth and opportunities for all of our stakeholders including our valued employees and franchisees.”
Transaction details include financing the acquisition through RBI’s $600 million cash on hand and an additional $1.3 billion financing commitment from J.P. Morgan and Wells Fargo. The negotiation is expected to close by April 2017, as both companies are still awaiting customary sign-offs and shareholder approval.
The two companies have agreed that even after the acquisition, Popeyes will still run independently but will be able to benefit from RBI’s global market presence and resources.
With Popeyes joining RBI’s portfolio of fast food chains, the Burger King and Tim Hortons owner will now be able to offer the famous Louisiana-style southern fried chicken and biscuits, along with the 2,600 store footprint that is 96% franchised.
Following the news of RBI sealing the transaction for acquiring Popeyes, both of the company’s stock spiked in the market, as investors were extremely bullish towards to merger between the two fast food giants in the industry.
RBI stock (NYSE: QSR) surged 6.86% or $3.70, at $57.50 per share with a market cap at $26.57 billion, while Popeyes (NASDAQ: PLKI) climbed a whopping 19.7% or $12.61, at $78.73 per share with a market value of $1.63 billion.
Popeyes Louisiana Kitchen is a fast food chain well-known for its unique southern fried chicken and biscuits. The restaurant is headed to its 45th year in the industry, with its culinary tradition preserved even after numerous franchises. Popeyes currently operates over 2,600 branches in the United States and 25 other countries across the globe.
So there we have it! Be enlightened with the latest news on online trading, commodities, stocks, technology, and economy. Subscribe now! Trade12 Reviews waits for you. Visit our broker website here and start trading!