Restaurant Brands International Acquires Equity Stakes in Burger King China in $158M Dea

Restaurant Brands International Inc. (RBI), one of the world's largest quick-service restaurant companies, has recently made a significant strategic move in the Chinese market. The company announced that it has acquired all equity interests in Burger King China from TFI Asia Holdings BV and Pangaea Two Acquisition Holdings XXIII, Ltd  for approximately $158 million. The all-cash transaction underscores RBI's commitment to driving long-term growth in China, a key market with significant potential.

As a result of this acquisition, RBI now owns nearly 100% of the business in China. The company plans to engage advisors to identify a new local partner who will inject primary capital into the business and become the controlling shareholder. This aligns with RBI's long-term strategy of partnering with experienced local operators while maintaining a primarily franchised business model.

In the past, TFI has been a valuable partner in Burger King's expansion in China. The partnership grew the brand from about 60 restaurants in 2012 to approximately 1,500 today. TFI will continue expanding its operations in Turkey as one of RBI's largest business partners worldwide. Cartesian has also played a critical role in supporting Burger King's development in the Chinese market. RBI will continue partnering with Cartesian to grow the Tim Hortons business in China.

Rafael Odorizzi, RBI's President of Asia Pacific, thanked TFI and Cartesian for their partnership over the years and their role in expanding the brand in China. He noted that the transaction marked the beginning of a new chapter for Burger King in China, reinforcing RBI's commitment to long-term growth in the region. According to Odorizzi, RBI is committed to offering its guests high-quality food and exceptional experiences in welcoming restaurants across China.

This transaction is part of RBI's forward-looking strategy, which includes expectations regarding the growth of the Burger King business in China, the Burger King and Popeyes businesses in Turkey, and the Tim Hortons business in China. However, these plans may be affected by various risks and uncertainties, such as competition, macro-economic factors, and the general risks of doing business in China and Turkey. These include the effectiveness of marketing, advertising and digital programs, the ability to successfully implement growth strategies, and the ability to identify and lease sites that meet brand criteria.

This acquisition marks a significant step in RBI's strategy to drive long-term growth in China. By acquiring all equity interests in Burger King China, the company has positioned itself to identify a new local operating partner, inject primary capital into the business, and further develop the Burger King brand in the region.