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Burger King has confirmed that they are purchasing popular Canadian chain restaurant Tim Hortons with the assistance of Warren Buffett.
The purchase would allow Burger King to more easily move its corporate headquarters north of the border as part of a tax inversion deal since Canada has lower corporate taxes than in the United States.
According to The Wall Street Journal, Buffett will help in the deal through his Berkshire Hathaway company, which will put up $3 billion in preferred equity financing.
"By bringing together our two iconic companies under common ownership, we are creating a global [quick service restaurant] powerhouse," Burger King executive chairman, Alex Behring, said.
The deal would be a mix of cash and stock, with Tim Horton shareholders getting C$65.50 in cash for each share they hold, along with 0.8025 shares of the newly created company. Shareholders also have the opportunity to opt for either just cash, which would net them C$88.50 per share, or no cash and 3.0879 shares.
Tim Hortons and Burger King have a combined $23 billion in annual sales through their more than 18,000 restaurants globally.
3G Capital, of which Behring is a managing partner, will own 51 percent of the newly created company and he will become the executive chairman, while current BK CEO Daniel Schwartz will become the CEO of the new company.
image courtesy of Dara Kushner/INFevents.com