Burger King, Tim Hortons Agree to CA$12.5B Acquisition
August 27, 2014
Burger King (NYSE: BKW) has reached an agreement to acquire Tim Hortons (NYSE: THI) for CA$12.5 billion ($11.4 billion), creating one of the world’s largest quick service restaurant companies. Burger King and Tim Hortons will remain standalone brands once the deal closes. As part of the deal, Tim Hortons shareholders will receive CA$65.50 ($59.81) in cash and 0.8025 common shares of the combined company.
3G Capital, Burger King’s majority owner since 2010, will hold an approximately 51% stake in the new company, which will be based in Canada. Berkshire Hathaway has committed $3 billion of preferred equity financing. J.P. Morgan and Wells Fargo will lead a $9.5 billion debt financing package in the acquisition.