In March 2014, Restaurant Brands International, Inc. (RBI) announced that it had completed its acquisition of Tim Hortons, Inc. for $11.
4 billion in cash and shares. At the time of the acquisition, Tim Hortons was the largest quick service restaurant chain in the world.
RBI is a multinational conglomerate with interests in food, beverages, and travel. The company has operations in more than 60 countries.
Under the terms of the acquisition, RBI assumed all of Tim Hortons’ debt, including $2.9 billion in long-term debt and $900 million in subordinated debt. The company also assumed $1.1 billion in net liabilities, including $485 million in deferred income taxes.
The acquisition was financed with cash on hand and a $3.3 billion credit facility from HSBC.
The deal was unanimously approved by the boards of directors of both companies. At the time of the acquisition, Tim Hortons had more than 3,000 restaurants in North America, Europe, and Asia.
Following the acquisition, RBI announced plans to close up to 180 restaurants in North America and Europe. The closures were part of a plan to redeploy resources and focus on growing the chain’s presence in international markets.
In March 2017, it was announced that RBI had reached an agreement to sell its remaining interest in Dunkin’ Donuts to Dunkin’ Brands Group, Inc. for $2.
3 billion. At the time of the acquisition, Dunkin’ Donuts was the largest quick service restaurant chain in the world. Following the acquisition, Dunkin’ Donuts became a wholly owned subsidiary of RBI.
The closure of the Dunkin’ Donuts deal allowed RBI to focus on its strategy of growing the Tim Hortons brand in international markets. As of December 31, 2017, there were 3,700 Tim Hortons restaurants in 67 countries.
