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00:00:02
>> The Whopper looking to hook up with the Chicken Po'Boy. Reuters learning exclusively that Restaurant Brands International, owner of Burger King and Tim Hortons is .nearing a deal to acquire Popeye's Louisiana Chicken. The high calorie merger likely to have a price tag of just under $2 billion, bringing Popeye's Louisiana style fried everything to more diners globally.
00:00:25
Reuter's M&A reporter, Lauren Hirsch, who broke the story saying the deal is a bit of surprise given that Restaurant Brands has been eyeing bigger fish, or bigger chickens, by mulling a potential purchase of Yum Brands, owner of KFC.>> But the challenge with KFC is that it's already international, it's already expanded.
00:00:44
So if RBI's whole spiel, whole pitch, is to buy young brands and grow them you kind of don't have as much opportunity to do that with a company such as KFC, but you do have an opportunity to do that with Popeye's. So Popeye's actually makes a lot of sense.
00:00:59
If you think about what RBI wants to accomplish, round out its offerings, and then expand international.>> The deal also a bit of a consolation prize for Restaurant Brands largest shareholder, 3G Capital, which this week, lost its $143 billion bid to merge its biggest holding, food giant Kraft Heinz with Unilever.
00:01:20
The private equity firm run by Brazilian billionaire Georgia Paulo Lemmon and boasts Warren Buffet as a long term financial partner, known as the junk food junkie both in business and in life.>> Yeah, Buffet is very infamous for having a child-like taste in food. As we alluded to earlier, 3G's other big investment is Kraft-Heinz, and people always say that that really appeals to Buffett's taste.
00:01:46
I'm sure that there was more strategic rationale to this deal than Buffet likes the Popeye's chicken, but it's consistent with the Buffet's taste.>> Popeye's began 45 years ago with a single chicken joint in New Orleans. It has since expanded to 2000 restaurants, reaching the pinnacle of pop culture when Beyonce and Jay Z reportedly served buckets of its fried chicken alongside caviar at their 2008 wedding.