Burger King to Acquire Tim Hortons

Burger King Worldwide (Miami) will acquire Canadian coffee and donut chain Tim Hortons (Oakville, Ontario) for $11.4 billion. The headquarters for the merged company will be located in Canada, where it will benefit from lower corporate tax rates, according to Bloomberg. Tim Hortons is the largest coffee and donut chain in Canada, and the deal is expected to give a boost to Burger King’s morning business.   

Tim Hortons also provides an entry for Burger King into the supermarket business by selling packaged coffees at grocery stores in North America. The new combined business will create a restaurant network with $23 billion in sales, including franchisees, and more than 18,000 locations in 100 countries.

Daniel Schwartz, BKI’s ceo, will become group ceo of the merged company, as well as remaining head of  Burger King. Tim Hortons ceo Marc Caira, will continue to run that chain.