FINANCE

Burger King in talks to buy Tim Hortons and move HQ to Canada

BY Marianne Wilson

New York — Burger King Worldwide is in discussions to buy Canadian coffee and doughnut chain Tim Hortons. The two companies said in a joint statement on Monday that the new publicly listed entity would be based in Canada. The move comes as the White House is calling on Congress to take steps to prevent U.S. companies from moving outside the country (“tax inversions”).

The two restaurant companies are currently worth a combined total of about $18 billion, according to media reports.

Under the terms of the deal, which is not yet finalized, 3G Capital, the majority owner of Burger King, would continue to own the majority of the shares of the new company on a pro forma basis, with the remainder held by existing shareholders of Tim Hortons and Burger King. Tim Hortons and Burger King would operate as standalone brands.

According to the statement issued by the two companies, the deal would create the world’s third-largest quick-service restaurant company, with approximately $22 billion in system sales and over 18,000 restaurants in 100 countries worldwide.

“Tim Hortons and Burger King each have strong franchisee networks and iconic brands that are loved by their respective consumers,” the companies stated. “Any transaction will be structured to preserve these relationships and deepen the connections each brand has with its guests, franchisees, employees and communities.

A key driver of the discussions is the potential to leverage Burger King’s worldwide footprint and experience in global development to accelerate Tim Hortons growth in international markets, the companies stated.

The Burger King system has more than 13,000 locations serving more than 11 million guests daily in 98 countries and territories worldwide.

As of June 29, 2014, Tim Hortons had 4,546 systemwide restaurants, including 3,630 in Canada, 866 in the United States and 50 in the Gulf Cooperation Council.

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FINANCE

Bain Capital buys 50% stake in Toms; brand looks to expand

BY Marianne Wilson

New York — Toms, the footwear company best known for donating a pair of shoes to a child in need for every pair it sells, has sold a 50% stake in its company to private equity giant Bain Capital LLC. The investment will help Toms expand its distribution in Europe, Asia and in the United States, including increasing its store count from its current two locations.

The investment reportedly values Toms at about $625 million, including debt. Blake Mycoskie, who founded Toms in 2006, will retain a 50% stake and remain at the helm.

"This partnership will enable Toms to grow faster and give to more people in more ways than we could otherwise," Mycoskie said in a statement.

Mycoskie plans to give away at least half of his profit from the sale, with part of the money used to help establish a fund to support social entrepreneurship. Bain will match his investment in the fund.

Currently, Toms operates a store in Venice, California, and one in Austin, Texas. It also sells products online and through national retailers and independent boutiques.

In addition to shoes, Toms now sells optical frames and sunglasses. As with the footwear, with each pair of glasses sold, another one goes to a needy person.

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REAL ESTATE

Saks to anchor new center in Miami

BY Staff Writer

New York — Saks Fifth Avenue will open a three-level, 107,000-sq.-ft. store in Brickell City Centre, Miami.

The store, scheduled to open in fall 2016, will help anchor the mixed-use development, which is currently under construction. The project includes residential, office and hotel space, along with a 565,000-sq.-ft. shopping center.

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