Photographer: Spencer Platt/Getty Images
A Tim Horton’s cafe in New York City on Aug. 25, 2014.
Bloomberg reports that Burger King Worldwide Inc. (BKW) agreed to acquire Tim Hortons Inc. (THI) for about C$12.5 billion ($11.4 billion) in a deal that creates the third-largest fast-food company and moves its headquarters to Canada.
Tim Hortons investors will receive C$65.50 in cash and 0.8025 a share of the combined entity for each share they own, the companies said in a statement today. The transaction, which is backed in part by Warren Buffett’s Berkshire Hathaway Inc. (BRK/B), values each Tim Hortons share at C$94.05, based on Burger King’s closing price yesterday.
The purchase brings Burger King the biggest seller of coffee and doughnuts in Canada, which it can use to grow internationally. The deal also lets the burger chain push into the grocery business by selling packaged coffees at supermarkets in North America. The combined business would create a fast-food network with $23 billion in sales, including franchisees, and more than 18,000 restaurants in 100 countries.
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