SHANGHAI, China and NEW YORK, USA – TH International Limited (“Tims China”; Nasdaq: THCH) closed a milestone transaction on March 30, 2023 to become the exclusive operator and developer of the world-famous Popeyes brand in mainland China.
“This is a landmark day,” said Peter Yu, Chairman of Tims China. “With this transaction, Tims China gains a tremendous additional pathway for growth in the world’s most compelling consumer market. The track record of our team, who led the development of Tim Hortons in China from a standing start to over 600 stores in under five years, highlights the strength of our well-honed store development platform and infrastructure. We are excited to leverage what we’ve built to launch and grow the Popeyes business rapidly and efficiently.”
“The combination brings extensive operational and development synergies, and we look forward to introducing our more than 12 million loyalty club members to Popeyes later this year,” said Yongchen Lu, CEO.
Like Tim Hortons, Popeyes is an iconic brand owned by Restaurant Brands International (“RBI”). Popeyes’ 50-year history, distinctive menu, and passion for flavorful authentic food have made it one of the world’s leading chicken quick-service restaurant (QSR) brands with over 4,100 locations globally.
“We are very excited about growing the Popeyes brand in China as part of our broader global growth strategy. We have strong confidence in our partner who has a deep understanding of the Chinese market and we believe it will position us well for success in the country,” said David Shear, President RBI International.
In the all-share transaction, Tims China acquired PLKC International Limited (“Popeyes China”), which holds the exclusive rights to develop and sub-franchise the Popeyes brand in mainland China and Macau. Popeyes China brings $30 million in cash, which will further strengthen Tims China’s balance sheet, and Tims China will earmark an additional $60 million to develop its Popeyes China business over the coming years.
Details of the transaction terms are included in the Form 6-K filed in conjunction with this release.
Kirkland & Ellis LLP is serving as international legal counsel to Tims China.
