Burger King Buys Tim Hortons

Foodservice giant Burger King has finished talks to acquire Canada’s most widespread coffee chain Tim Hortons, for USD 11.4bn. The move helps Miami-based Burger King create the third largest fast food chain in the world, with 18,000 locations in 100 countries. According to a company statement, the expected sales value generated by the combined company will exceed USD 23bn. 

Alex Behring, executive chairman of Burger King and managing partner of 3G Capital, said, “By bringing together our two iconic companies under common ownership, we are creating a global QSR powerhouse. Our combined size, international footprint and industry-leading growth trajectory will deliver superb value and opportunity for both Burger King and Tim Hortons shareholders, our dedicated employees, strong franchisees, and partners.”

Marc Caira, president and CEO of Tim Hortons, said, “We are very proud of the great history of our organization and the progress we have achieved in creating value and delivering the ultimate experience for our guests. As an independent brand within the new company, this transaction will enable us to move more quickly and efficiently to bring Tim Hortons iconic Canadian brand to a new global customer base. At the same time, our customers, employees, franchisees and fellow Canadians can all rest assured that Tim Hortons will still be Tim Hortons following this transaction, including our core values, employee and franchisee relationships, community support and fresh coffee.”

The merger will help both companies expand internationally at a rapid pace, under the guidance of Burger King majority owners 3G Capital (51% shares), the Brazilian private equity firm that acquired the burger giant in 2010.

Despite of this transaction, the two brands will remain independent and maintain their current headquarters, which are Miami for BK and Ontario for TH.