Restaurant Brands International Inc. (RBI) has finalized its acquisition of Carrols Restaurant Group Inc., the leading Burger King franchisee in the United States. The transaction, valued at around $1 billion, also includes a $500 million investment to modernize 600 Carrols restaurants as part of RBI's "Reclaim the Flame" initiative.
Financial Details and Reimaging Strategy
The all-cash deal, offering $9.55 per share, was announced in January and aims to revitalize the Burger King brand. RBI plans to expedite the reimaging process before refranchising most of the acquired locations to smaller operators within the next seven years.
Financing the Acquisition
To fund the acquisition, RBI subsidiaries modified their existing credit agreement, raising the term loan B facility by $700 million. These funds, along with available cash, were used to finalize the deal, including repaying Carrols' credit agreement and redeeming outstanding senior notes.
Carrols' Legacy and Burger King's Global Presence
Carrols, which had been operating Burger King restaurants since 1976, owned 1,023 locations across 23 states and 59 Popeyes restaurants in six states. Burger King, founded in 1954, boasts a global network of over 19,000 restaurants in more than 120 countries and territories.
Expanding RBI's Portfolio
This strategic acquisition expands RBI's portfolio, which also includes Tim Hortons, Popeyes Louisiana Kitchen, and Firehouse Subs. The move is expected to strengthen RBI's foothold in the US fast-food market and contribute to its ongoing efforts to refresh the Burger King brand image.
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