Burger King to Buy Tim Hortons for $11.4 Billion

By MICHAEL J. DE LA MERCED
AUGUST 26, 2014
Updated, 10:06 a.m. | Burger King Worldwide agreed on Tuesday to buy the Canadian restaurant chain Tim Hortons for about $11.4 billion, creating one of the biggest fast-food operations in the world – with a little help from Warren E. Buffett.

As part of the transaction, however, the American burger giant will move its home to Canada, where the combined company’s biggest market will be.

Under the terms of the deal, Burger King will pay 65.50 Canadian dollars in cash and 0.8025 of one of its shares for each Tim Hortons share. That amounts to about 94.05 dollars a share, or $85.78 a share, based on Burger King’s closing price on Monday.

The combined company will have 18,000 restaurants in 100 countries, and $23 billion in annual revenue.

Tim Hortons reported almost $3 billion in sales in 2013 and has shown steady growth in recent years.

Tim Hortons sell 80 percent of all the restaurant coffee sold in Canada.