BK Company: Completes Acquisition of Carrols Group

Toronto / CA. (rbi) Restaurant Brands International Inc. (RBI) announced that it has completed the acquisition of all issued and outstanding shares of Carrols Restaurant Group Inc. that are not already held by RBI or its affiliates for USD 9.55 per share in an all cash transaction, or an aggregate total enterprise value of approximately USD 1.0 billion.

With the close of the acquisition, RBI adds the largest «Burger King» (BK) franchisee in the United States to its portfolio as part of the Company’s «Reclaim the Flame» plan. The Company will invest a further USD 500M to accelerate the reimaging of more than 600 Carrols restaurants before refranchising the majority of the acquired portfolio to new or existing smaller franchise operators over the next seven years.

In addition, on May 16, 2024, subsidiaries of RBI entered into an amendment to their existing Credit Agreement increasing the existing term loan B facility with USD 5.2 billion outstanding to a USD 5.9 billion term loan B facility under the same terms as the existing Term Loan B Facility. The proceeds from the increase in the Term Loan B Facility were used along with cash on hand to complete the acquisition of Carrols, including the payoff of its credit agreement and the redemption and discharge of its outstanding 5.875 percent senior notes due 2029.

Carrols Restaurant Group is one of the largest restaurant franchisees in North America. It is the largest «Burger King» franchisee in the United States, currently operating 1,023 «Burger King» restaurants in 23 states as well as 59 «Popeyes» restaurants in six states. Carrols has operated «Burger King» restaurants since 1976 and «Popeyes» restaurants since 2019.