Restaurant Brands International (QSR) is taking full control of Carrols Restaurant Group (TAST), its largest Burger King franchisee in the U.S., in a deal worth $1 billion U.S.
Toronto-based Restaurant Brands, which also owns Tim Hortons and Popeyes in addition to Burger King, currently owns about 15% of Carrols Restaurant Group.
Carrols operates more than 1,000 Burger King restaurants and 60 Popeyes locations in America.
Restaurant Brands has been moving away from larger franchisees in favour of local franchisees as part of a multiyear turnaround strategy.
The company said previously that it plans to invest $500 million U.S. to remodel 600 of Carrols’ Burger King outlets.
Restaurant Brands said it will pay $9.55 U.S. per share in cash for the Carrols Restaurant shares that it doesn’t already own, representing a 13% premium to the stock's closing price on Jan. 12.
The deal is expected to close in this year’s second quarter.
The stock of Carrols Restaurant jumped 12% in premarket trading on news of the acquisition. Prior to today, the stock had gained 290% over the last 12 months to change hands at $8.42 U.S. a share.
Shares of Restaurant Brands International have risen 18% over the past 12 months to trade at $78.45 U.S. per share.
