Restaurant Brands International (RBI), the owner of fast-food restaurant chain Burger King, has completed the $1bn acquisition of Carrols Restaurant Group, the largest Burger King franchisees in the US.   

Carrols operated 1,023 Burger King restaurants across 23 states in the US. It contributed $1.8bn in sales for the 12 months ending 30 September 2023.

In line with the acquisition, RBI has committed an additional investment of $500m to refurbish more than 600 Carrols restaurants.

The company plans to re-franchise the majority of these locations to new or existing franchise operators within the next seven years.

The transaction, which was first announced in January this year, resulted in RBI taking over all issued and outstanding shares of Carrols.

The acquisition is a strategic component of RBI’s Reclaim the Flame plan.

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At that time, Carrols president and CEO Deborah Derby said: “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 months.

“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.”

Carrols also operated 59 Popeyes restaurants in six US states.

In a related financial move, RBI’s subsidiaries have amended their existing credit agreement.

This amendment increases the term loan B facility from $5.2bn to $5.9bn, under the same terms as the existing facility.

The additional funds, along with cash on hand, were utilised to finalise the Carrols acquisition, including the settlement of its credit agreement and the redemption of its outstanding 5.875% senior notes due in 2029.