Burger King will acquire units franchised by Carrols Restaurant Group in an all-cash transaction with a value of approximately $1 billion, according to a press release.
Carrols, the largest Burger King franchisee in the U.S., operates 1,022 Burger restaurants in 23 states generating approximately $1.8 billion of system sales. Carrols also owns and operates 60 Popeyes restaurants in six states.
"Carrols has demonstrated strong and improving restaurant operations over the years. This acquisition is an exciting accelerator to our Reclaim the Flame plan that is focused on relentlessly pursuing a better experience for our guests," Tom Curtis, president of Burger King U.S. and Canada said in the press release. "We are going to rapidly remodel these restaurants over the next five years or so and put them back into the hands of motivated, local franchisees to create amazing experiences for our guests."
"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 month," Deborah Derby, president and CEO of Carrols said. "These results have allowed us, through this transaction, to deliver immediate and certain value to Carrols shareholders at an attractive premium to the Company's current and historical share prices. Additionally, we believe our team members will now have additional opportunities as part of the greater RBI family — in our office, in the field and especially in our restaurants, including for long-time managers who may want to become franchisees themselves. We look forward to working closely with Tom and the rest of the Burger King team in the months and years ahead."
Burger King plans to accelerate Carrols' current rate of remodels to bring the portfolio to its modern design over the next five year.
Burger King is owned by Restaurant Brands International Inc. and operates more than 19,000 locations in more than 100 countries and U.S. territories.
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CARROLS RESTAURANT GROUP, INC. 
