Burger King parent buys Popeyes for $1.8 billion

Restaurant Brands International (RBI) has agreed to buy fried chicken chain Popeyes Louisiana Kitchen for $1.8 billion.

RBI is the parent company of Burger King and Canadian chain, Tim Hortons.

Founded in New Orleans in 1972, Popeyes has 2,600 restaurants in the US and 25 other countries. In Asia, the chain's website lists 10 locations in Singapore, 11 in Japan, 20 in Vietnam, 117 in South Korea, and single outlets in airports in Hong Kong, Malaysia and Indonesia. The company owns around 30 restaurants, while the rest are franchised.

Once the deal is closed, Popeyes will continue to be managed independently in the US, while benefitting from RBI’s global reach and scale. RBI plans to develop the brand at an increasing pace in the US and international markets.

"Popeyes is a powerful brand with a rich Louisiana heritage that resonates with guests around the world," said Daniel Schwartz, chief executive of RBI in a statement. "With this transaction, RBI is adding a brand that has a distinctive position within a compelling segment and strong US. and international prospects for growth."

Under the terms of the transaction, Popeyes shareholders will receive $79 in cash per share at closing.

"RBI has observed our success and seen the opportunity for exceptional future unit growth in the US and around the world. The result is a transaction that delivers immediate and certain value to the Popeyes’ shareholders," said Cheryl Bachelder, chief executive of Popeyes.

Popeyes’ current creative agency of record is Austin-based GSD&M.