Official: Burger King and Tim Hortons come together to create a ‘global powerhouse’

The rumours were true. A press release this morning declared that Tim Hortons and Burger King will come together to create the “World’s Third Largest Quick Service Restaurant Company.

What is happening!!?!??

The combined assets skyrocket to a mind boggling $23 billion in sales and a staggering 18,000 restaurants in 100 Countries. As previously reported, both companies will operate independently of each other and leverage its “global scale and reach, and shared best practices.”

The “Best Practices” freaks me out a bit as I hope Burger King does not find its way into a Timmies location. According to the press release, “3G Capital to own approximately 51% of new company” and the new “global powerhouse” will be based in Canada — which will help Burger King avoid paying taxes in the United States.

What is happening!!?!??

The deal has been unanimously approved by the Board of Directors of both companies, but yet to be officially approved by regulatory authorities. If closed, Alex Behring, Executive Chairman of Burger King and Managing Partner at 3G Capital, will be leading the company into a new direction as its Executive Chairman and Director. Marc Caira, who has been President and CEO of Tim Hortons for just over a year, will be the Vice-Chairman and a Director, and will focus his attention “on overall group strategy and global business development.” The company’s board will include the current eight Burger King directors and three directors to be appointed by Tim Hortons, including Caira.

Timmies will continue to have its headquarters in Oakville, while Burger King will keep its headquarters in Miami, Florida, but the new parent company will be based in Canada. Shares will be listed on the New York Stock Exchange and the Toronto Stock Exchange.

What is happening!!?!??

Marc Caira, President and CEO of Tim Hortons, said, “We are very proud of the great history of our organization and the progress we have achieved in creating value and delivering the ultimate experience for our guests. As an independent brand within the new company, this transaction will enable us to move more quickly and efficiently to bring Tim Hortons iconic Canadian brand to a new global customer base. At the same time, our customers, employees, franchisees and fellow Canadians can all rest assured that Tim Hortons will still be Tim Hortons following this transaction, including our core values, employee and franchisee relationships, community support and fresh coffee.”

What a way to ring in its 50th anniversary.

About Ian Hardy

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I'm obsessed with Tim Hortons. It runs through my veins and I've probably spent enough money downing Steeped Tea's that I could have purchased my own franchise.