Now you can get a Whopper and a large Timmy's double-double and feel completely Canadian doing so.
August 27, 2014
by Canadian Packaging Staff
The rumblings are true. U.S. burger giant Burger King has purchased the Canadian icon coffee and doughnut chain Tim Hortons for $12.5-billion, in a move that would make the combined new company the third-largest fast-food company in the world.
The mega company should have a $22-billion sales system in place with over 18,000 restaurants in over 100 countries.
Burger King’s majority owner is 3G Capital, who will continues to own the majority of the company’s shares, with the remaining ownership shares being held by the existing shareholders of both Burger King and Tim Hortons.
3G Capital is an American multi-billion dollar, global investment firm focused on maximizing the potential of brands and businesses.
Despite the flippant headline, the company will not be known as King Hortons or Burger Tims.
Tim Hortons and Burger King would remain as standalone companies, but that the Miami, Florida-based Burger King will move to Canada to avoid some difficult U.S. tax laws.
It’s all part of a tax-inversion plan that is a legal way for U.S. companies to suddenly become, in this case, Canadian, by purchasing a company there. As a Canadian company, Burger King would only be required to pay a 15 per cent corporation tax… as opposed to the 35 percent tax to the U.S. government.
Back in 1995, Tim Hortons was purchased by Wendy’s International Inc., but maintained its corporate headquarters in Delaware, until 2009 when it moved its headquarters to Oakville, Ont. Canada, becoming once again a Canadian company – legally… but still American-owned.
Image shows original 1955 Burger King logo. He certainly looks happy.