Burger King owner to acquire full control of Carrols in $1 billion transaction

Investing.com -- Burger King-owner Restaurant Brands International (NYSE:QSR) has announced that it will acquire full control of Carrols (NASDAQ:TAST), the largest franchisee of the popular chain in the U.S., in an all-cash deal worth approximately $1.0 billion.

Under the terms of the agreement, RBI said it would purchase all of Carrols' issued and outstanding shares that it does not already own for $9.44 per share. The price represents a 13.4% premium to the Jan. 12 closing price of Carrols stock.

The move, which is expected to be completed in the second quarter of 2024, will be backed by cash on hand and a loan "for which RBI has received a financing commitment," the company noted. It is expected to be "neutral" to adjusted earnings per share.

RBI argued that the transaction will boost sales growth and "drive franchisee profitability," partly through the remodeling of about 600 Carrols-operated Burger King eateries that "are not currently considered modern image."

Burger King U.S. and Canada President Tom Curtis said more restaurants will also be placed in the hands of "motivated, local" franchisees.

Toronto-based RBI controls more than 30,000 restaurants in over 100 countries through popular fast-food names like Burger King, Popeyes and Tim Hortons. It currently owns roughly 15% of Carrols, which oversees 1,022 Burger King locations in the U.S. and 60 Popeyes restaurants.

Shares in Carrols surged in premarket trading in New York on Tuesday.