TH International Limited, operator of Tim Hortons coffee shops in China, announced on February 8 that its board of directors has approved a deal to development Popeyes in mainland China and Macau.
SEE ALSO: Popeyes reopens in South Korea
In the all-share transaction, Tims China has acquired the exclusive rights to develop and sub-franchise the Popeyes brand in the two markets. The acquisition is also expected to bring significant cash to Tims China and strengthen the company’s balance sheet, according to a press release.
Tims China said it plans “celebrate” Popeyes’ core identity and products, while localising flavors and experiences. It also plans to deliver convenience to guests by leveraging a strong development system and proven digital platforms.
Launching some 50 years ago, U.S.-founded Popeyes is a chicken quick-service restaurant owned by Restaurant Brands International (RBI).
“Tims has been a huge success in China—with more than 600 locations on our way to 1,000 by year-end,” said Peter Yu, chairman of Tims China.
“We are building on that success and launching a second leading brand in the world’s most compelling consumer market. I have long admired RBI’s value-creation in hosting multiple brands on a single platform, and this next step in Tims China’s evolution will bring significant operational and development synergies.”
The transaction is subject to definitive documents and customary closing conditions; the Board of Directors authorized Tims China’s independent audit committee to oversee the transaction and its completion.
Late last year, the Louisiana-based fast-food chain returned to the South Korea market, opening its first branch in Gangnam District, Seoul, on December 16.