MIAMI — Burger King, the fifth largest fast-food chain on this planet, has reached an settlement the place the corporate, with its guardian firm Restaurant Manufacturers Worldwide (RBI), will purchase its largest franchisee firm, Carrols Restaurant Group for about $1 billion.
RBI and Burger King might be acquiring all of the Carrols issued and excellent shares that aren’t already held for $9.55 per share in an all-cash transaction, the businesses introduced.
Burger King has greater than 19,000 places in over 100 nations worldwide. Carrols operates 1,022 Burger King places in 23 states within the U.S., which generated roughly $1.8 billion of system gross sales final 12 months.
“Carrols has demonstrated robust and bettering restaurant operations through the years,” Tom Curtis, president of Burger King U.S. and Canada, mentioned in a press release. “This acquisition is an thrilling accelerator to our ‘Reclaim the Flame’ plan that’s targeted on relentlessly pursuing a greater expertise for our company. We’re going to quickly transform these eating places over the following 5 years or so and put them again into the palms of motivated, native franchisees to create superb experiences for our company.”
Burger King notes that its Reclaim the Flame initiative has deliberate many remodels following a $400 million introduced funding final 12 months that it says it’s going to put towards bettering operations, enhancing advertising and know-how and digital enhancements.
On the Carrols acquisition, Josh Kobza, CEO of RBI, mentioned, “This can be a terrific instance of our dedication to place our capital to work to speed up development and help Tom (Curtis) and his crew of their broader efforts to have a extra aggressive Burger King restaurant base. The strategic deserves of this acquisition are very compelling and per our goal to take a position our capital in long-term, high-return alternatives.”
Burger King added that it plans to extend its charge of remodels of Carrols places, with an additional funding of $500 million of capital, which might be funded by Carrol’s working money circulate, to replace about 600 of the acquired restaurant places that the corporate states don’t meet its “fashionable picture.”
The Jan. 16 announcement, “is a testomony to our greater than 24,000 Carrols crew members who’ve helped drive the corporate to file ranges of profitability over the previous 12 months,” Deborah Derby, Carrols president and CEO, mentioned in a press release. “The outcomes have allowed us, via this transaction, to ship quick and sure worth to Carrols shareholders at a beautiful premium to the corporate’s present and historic share costs.”
“Moreover, we consider our crew members will now have further alternatives as a part of the higher RBI household – in our workplace, within the discipline and particularly in our eating places, together with for long-time managers who might need to turn out to be franchisees themselves,” Derby famous. “We sit up for working carefully with Tom (Curtis) and the remainder of the Burger King crew within the months and years forward.”
Topic to customary closing necessities, the businesses anticipate this transaction to be accomplished within the second quarter of 2024.
