Carrols Restaurant Group has completed the purchase of 165 Burger King and 55 Popeyes restaurants from Cambridge Franchise Holdings for $238m.
The acquisition of restaurants in 10 Southern and Southeastern states takes Carrols’ unit count to 1,010 Burger King and 55 Popeyes restaurants across 23 states.
Carrols has also signed an area development and remodeling agreement with Burger King Corporation (BKC), which pre-approved the company for continued growth via both acquisitions and restaurant development.
The deal extends Carrols’ right of first refusal (ROFR) assigned to it by BKC to enable for the purchase of 500 further Burger King restaurants.
Carrols has also assumed Cambridge’s existing Popeyes development agreement and its ROFR for Popeyes restaurant acquisitions in the US states of Tennessee and Kentucky.
Under the deals, Carrols has agreed to develop 200 new Burger King and 70 Popeyes restaurants in the next six years. The company will remodel or upgrade several its Burger King restaurants (or restaurants to be purchased) to the Burger King of Tomorrow image.
Carrols said the stock-based transaction included no cash consideration. Alex Sloane and Matt Perelman, the co-founders of Cambridge, have joined Carrols’ board of directors.
Carrols Restaurant Group chairman and CEO Dan Accordino said: “This transaction is an exciting growth catalyst for Carrols. We believe it strengthens our position in the Burger King system by providing us the opportunity to continue executing our acquisition and expansion strategy, and adds Popeyes®, a growing brand that further enhances our expansion alternatives.
“We also believe that we have the potential to improve the performance of the Cambridge restaurants and to leverage their footprint and development team as we launch the next phase of growth for the benefit of Carrols’ shareholders.”
Carrols is claimed to be the largest Burger King franchisee in the US and has operated Burger King restaurants since 1976.