USA, Oakville, Ontario. Restaurant Brands International Inc. and Popeyes Louisiana Kitchen, Inc. ("Popeyes") announced that the companies have reached an agreement for RBI to acquire Popeyes for $79.00 per share in cash, or $1.8 bn.
Following the closing of the transaction, Popeyes will continue to be managed independently in the U.S., while benefitting from the global scale and resources of RBI. Building on the momentum of recent years, RBI plans to continue developing the brand at an increasing pace in the U.S. and international markets in the years to come.
Under the terms of the transaction, Popeyes shareholders will receive $79.00 in cash per share at closing. This represents a premium of 27% based on Popeyes' 30-trading day Volume Weighted Average Price as of February 10, the last trading day before media speculation on the potential sale of Popeyes.
RBI will finance the transaction with cash on hand and a financing commitment from J.P. Morgan and Wells Fargo. The transaction is subject to customary closing conditions, including receipt of certain regulatory approvals and receipt of a majority of Popeyes shares on a fully diluted basis in a tender offer to Popeyes' shareholders. Following the successful completion of the tender offer, RBI will acquire all remaining shares not tendered in the tender offer through a second-step merger at the same price. The transaction is expected to close by early April 2017.