SYRACUSE, N.Y. (WSYR-TV) — Restaurant Brands International Inc., the parent company of Burger King, has come to an agreement with Syracuse-based Carrols Restaurant Group Inc. to buy them out for $1 billion cash.
Carrols’ headquarters is located on James Street, in Syracuse. They are the largest franchisee for Burger King, with 1,022 Burger Kings in 23 states.
Carrols also owns 60 Popeyes in six states.
The plan is for RBI to renovate hundreds of locations. They want to “accelerate sales growth and drive franchisee profitability.” There will be a $500 million investment into around 600 restaurants that are not currently considered modern image.
RBI wants to complete this within the next five to seven years.
They already own about 15% of Carrols outstanding equity.
RBI says they will acquire all of Carrols issued and outstanding shares that are not already held by RBI or its affiliates for $9.55 per share in an all-cash transaction, or an aggregate total enterprise value of approximately $1.0 billion, representing a 23.1% premium to Carrols 30-day volume-weighted average price as of January 12, 2024, and a 13.4% premium to the January 12, 2024 closing price.
“Today’s announcement is a testament to our more than 24,000 Carrols team members who have helped drive the company to record levels of profitability over the past 12 months. These results have allowed us, through this transaction, to deliver immediate and certain value to Carrol’s shareholders at an attractive premium to the Company’s current and historical share prices,” said Deborah Derby, President and CEO of Carrols.
The agreement between RBI and Carrols is expected to be complete by the second quarter of 2024. However, it has to be approved by the holders of a majority of common stock held by Carrols stockholders excluding shares held by RBI and its affiliates and officers of Carrols in addition to approval by holders of a majority of outstanding common stock of Carrols.
“The transaction is not subject to a financing contingency and is expected to be financed with cash on hand and term loan debt for which RBI has received a financing commitment,” said RBI.
They will hold a 30-day “go shop” timeframe which will let the company solicit alternative ideas from interested parties.
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