RBI to acquire Popeyes for $1.8B

OAKVILLE, Ont. — Restaurant Brands International Inc. (RBI) is adding fried chicken to its portfolio with the purchase of Popeyes Louisiana Kitchen, Inc. for $1.8 billion it was announced on Feb. 21.

RBI, parent company of Burger King and Tim Hortons, will pay $79 per share of for the Atlanta, Ga.-based quick service chain.

Founded in New Orleans in 1972, Popeyes has more than 2,600 restaurants in the United States and 25 other countries around the world, including more than 100 in Canada. According to a news release, the company’s global footprint will complement RBI's existing portfolio of over 20,000 restaurants and more than $24 billion in system sales.

According to the jointly issued statement, Popeyes will continue to be managed independently in the United States following the closing of the transaction.

“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 U.S. and international prospects for growth,” said Daniel Schwartz, RBI chief executive officer. “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. We look forward to taking an already very strong brand and accelerating its pace of growth and opening new restaurants in the U.S. and around the world.”

The deal is expected to close by early April 2017.

“I am proud of the superior results the Popeyes team has delivered in recent years; they have served all stakeholders well. As Popeyes enters its 45th year, its success reflects the amazing brand entrusted to us by founder Al Copeland, Sr. and the unique high trust partnership that we enjoy with our franchise owners,” said Cheryl Bachelder, chief executive officer of Popeyes. “RBI has observed our success and seen the opportunity for exceptional future unit growth in the U.S. and around the world. The result is a transaction that delivers immediate and certain value to the Popeyes shareholders.”

Popeyes entered the Canadian market in 1984 and now has more than 100 units, predominantly in the Greater Toronto Area. The chain opened its first two Canadian locations outside of Ontario in Alberta in the fourth quarter of last year.