With the acquisition, RBI aims to boost growth in China

On July 1, RBI announced the acquisition of Popeyes China and a joint investment with Cartesian Capital in the business of TH International Limited (“Tims China”).

RBI has agreed to acquire Popeyes China from Tims China on a cash-free, debt-free basis based on an enterprise value of $15 million. Following the transaction, RBI will own and operate Popeyes China.

“China is one of the most attractive long-term market opportunities for our Popeyes and Tim Hortons brands,” said Rafael Odorizzi, president of Asia Pacific, in a press release. “Popeyes China is off to a strong start and we are excited to leverage its growth potential in one of the largest chicken QSR markets in the world. Today’s announcement allows Tims China to double down on developing high-quality restaurants and bringing our premium Tims coffee and food offerings to Chinese consumers.”

Tims China acquired Popeyes China in March 2023, and the Popeyes China franchise opened its first restaurant shortly thereafter in August 2023. Less than a year later, there are 14 restaurants in Shanghai, and RBI says the pace of growth is expected to accelerate with investment in local teams and restaurant development. In the long term, RBI intends to bring in local partners to form a more traditional master franchisee.

In addition, to support the growth of Tims China, Cartesian Capital and RBI have agreed to invest up to $50 million of capital in Tims China’s business via a three-year convertible bond.

The pair of deals follow the appointment of Patrick Siewert as RBI’s senior advisor for Asia Pacific in May 2024. Siewert’s appointment is expected to support RBI’s aspiration to open at least 7,000 new international restaurants by 2028.

At the end of 2023, RBI had over 4,500 restaurants Asiaincluding over 2,300 in China. Burger King, Tim Hortons and Popeyes have restaurants in Asiawhile RBI plans to introduce Firehouse Subs in the coming years.