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Burger King Buys Tim Hortons

In a deal valued at more than $11 billion, Burger King has acquired Tim Hortons.

The deal will create a company with approximately $23 billion in system-wide sales and more than 18,000 locations. Following the closing of the transaction, which is subject to regulatory approvals, Burger King and Tim Hortons will continue to operate as independent brands.

3G Capital will retain its investment in Burger King by converting its roughly 70 percent equity stake in Burger King into equity of the new company. On a pro forma basis, 3G Capital is expected to own approximately 51 percent of the new company with the balance of the common shares to be held by current public shareholders of Burger King and Tim Hortons.

Alex Behring, executive chairman of Burger King and managing partner at 3G Capital, will lead the new global company as executive chairman and director. Marc Caira, president and CEO of Tim Hortons, will become vice chairman and a director, focusing on overall group strategy and global business development. Daniel Schwartz, CEO of Burger King, will become group CEO of the new company, with overall day-to-day management and operational accountability. The new company's board will include the current eight Burger King directors and three directors to be appointed by Tim Hortons, including Caira.

Caira and Schwartz will continue as Tim Hortons and Burger King CEOs, respectively, through the transition period, and additional executives in the new company structure will be identified from Burger King and Tim Hortons during the transition period and announced at the time of closing.

The current Tim Hortons headquarters in Oakville, Ontario will continue to be the coffee and donut chain's global home. Burger King's current headquarters in Miami, Florida, will continue to be its global home. It is expected that the shares of the new parent company will be listed on the New York Stock Exchange and the Toronto Stock Exchange.