Press photo. /Popeyes
Popeyes parent spends $45m to build China business
RBI announced plans to ramp up the expansion of Popeyes in the country.
Restaurant Brands International Inc. is spending at least $45m on two transactions to boost its presence in China.
RBI has agreed to take back the Popeyes China business from Tims China on a cash-free debt-free basis based on an enterprise value of $15M. Following the transaction, RBI will own and operate Popeyes China, which opened its first restaurant in August 2023 and has 14 restaurants in Shanghai today.
Tims China is the exclusive master franchisee of Tim Hortons in China. In March 2023, Tims China bought the exclusive rights for the Popeyes brands.
RBI plans to first build the brand’s restaurant footprint through investments in local teams and restaurant development. The group will also look for local partners to form a more traditional master franchisee, similar to other Popeyes international markets.
To help fuel the growth of Tims China, Cartesian Capital and RBI agreed to invest up to $50M of capital into the Tims China business via three-year convertible notes, of which $40M will be issued at closing with the balance funded over the coming 7 months, subject to certain operational and financial conditions.
Of the total, $20M were issued to Cartesian and up to $30M will be issued to RBI, including $20M at close. Following the transaction, RBI will effectively have the right to appoint two directors to the Tims China Board and will see its equity ownership in the business increase to up to 18%, on an as converted basis.
"China is one of the most compelling long-term market opportunities for both our Popeyes and Tim Hortons brands. Popeyes China is off to a strong start and we are excited to unlock its development potential in one of the largest chicken QSR markets globally. Today's announcement allows Tims China to redouble its focus on quality restaurant development and providing Chinese consumers with our high-quality Tims coffee and food offerings," said Rafael Odorizzi, President of Asia Pacific.
These transactions follow the recent appointment of Patrick Siewert as Senior Advisor for Asia-Pacific and showcase RBI's commitment to growth in the region.
