Burger King is moving to Canada after agreeing to acquire locally based fast-food chain Tim Hortons for about $11 billion. The two companies will merge and the global headquarters will be in Tim Hortons’ hometown of Oakville, Ontario, Canada. Burger King will continue to operate out of its Miami headquarters, but the move ito Canada is an effort to avoid U.S. regulatory issues the deal might stir up, observers say. The combined company will operate 18,000 restaurants in 100 countries, and pull in $23 billion in annual revenue.
Following the closing of the transaction, each brand will be managed independently, while benefitting from global scale and reach and sharing of best practices that will come with common ownership by the new company.
Tim Hortons chief Marc Caira will serve as vice chairman and Burger King’s chief Daniel S. Schwartz will serve as CEO at the newly combined company.
Braziklian investment firm 3G Capital, which controls Burger King, will retain a 51 percent stake in the new company. Alex Behring, 3G’s managing partner, will be the new company’s executive chairman. “We are creating a global quick-service restaurant powerhouse,” Behring said in a press release. “Our combined size, international footprint and industry-leading growth trajectory will realize the full potential of these two extraordinary businesses."