Restaurant Brands said on Tuesday that to finance the deal, it would use the cash on hand and a financing commitment form Wells Fargo and J.P. Morgan. In the deal, shareholders of Popeyes will gain $79 per share, which represents a 19.5% premium of the stock’s Friday closing prices.
Daniel Schwartz, the CEO of Restaurant Brands said that Popeyes will be managed independently. “The key to long-term success at Popeyes will be a focus on guest satisfaction and franchise profitability,” he added. “The team has done a great job setting the foundation for future growth.”
Paul, Weiss, Rifkind, Wharton and Garrison LLP acted as advisor of Restaurant Brands, while UBS and Genesis Capital LLC and legal counsel from King& Spalding LLP advised Popeyes. It is still not clear that whether Restaurant Brands will close locations or cut jobs, and the company didn’t respond to the request for comments.
Popeyes now owns over 2,600 locations, and around double of them are franchises. The brand was founded 45 years ago in New Orleans suburb, named as Southern-fried “Chicken on the Run” restaurant. Shares of Restaurant Brands International increased about 7% to $57.42 in mid-day trading Tuesday, and shares of Popeyes rose 19% in pre-market trading.