Restaurant Brands International, parent company of Burger King, recently announced that the company will buy American fried chicken chain Popeyes Louisiana Kitchen.
The fast food chain will be sold for $1.8 billion or $479 per share, amounting to 27 percent premium of Popeyes average stock price. Popeyes will still be managed independently.
Popeyes, which has 2,600 branches in the United States and 25 in other countries, is expected to grow under the new deal. The fried chicken chain will add up to the more than 20,000 restaurants under Restaurant Brands International’s portfolio.
The deal is expected to be done by April 2017.
Popeyes started as Chicken on the Run restaurant in 1972, designed to compete against Kentucky Fried Chicken.