Tim Hortons shareholders voted this morning to approved the sale of the company to Burger King in a deal worth more than $12-billion in cash and stock.
Today’s vote comes after last week’s federal government final approval of the sale under the Investment Canada Act. Burger King’s shareholders were not required to vote on the merger as Brazilian-based equity firm 3G Capital, which owns 70 per cent of the fast food franchise, has already approved the deal.
As one of the conditions of the transaction, the new company will be headquartered in Oakville, Ontario and effectively become a Canadian company that trades on the Toronto Stock Exchange. In addition, distinct branding of the restaurants will remain – there will be no co-branding at any of the North American locations – and existing staffing levels will be maintained at the coffee and doughnut restaurant for five years.
Since the announcement of the merger was made over the summer, the value of Tim Hortons stocks has risen by nearly 50 per cent. Tim Hortons shareholders have been promised the potential of more aggressive international growth with the help of Burger Kings’ global reach.
The combined company is now the world’s third largest fast food restaurant group with nearly $23-billion in sales across over 18,000 restaurants.
“I believe we are well positioned, following this transaction, to take Tim Hortons’ brand experience around the world,” outgoing Tim Hortons CEO Marc Caira said during a meeting with shareholders. “Tim Hortons deserves to go around the world. We must share this Tim Hortons experience with the rest of the world.”
Caira will receive a $1-million bonus for his role in securing the merger, which is expected to be finalized on December 12.
Feature Image: Burger King via Shutterstock