Burger King and Tim Hortons owner to buy Popeyes

Restaurant Brands International Inc., owner of the Burger King and Tim Hortons fast-food chains, said on Tuesday it would acquire Popeyes Louisiana Kitchen for $1.8 billion in cash.

The deal is a bet by Oakville, Ontario-based Restaurant Brands that it can use its international reach to introduce Popeyes' Louisiana-style fried chicken and buttermilk biscuits to more diners globally.

Popeyes shareholders will get $79 for each share they hold, a 19.5 percent premium to the stock's Friday close.

Popeyes, whose fans include pop singer Beyoncé, began 45 years ago as a Southern-fried 'Chicken on the Run” restaurant in a New Orleans suburb. It has since expanded to more than 2,000 restaurants, of which 1,600 are in the United States.

Restaurant Brands was formed in 2014, when 3G Capital-backed Burger King acquired Canadian coffee and doughnut chain Tim Hortons Inc. for $11 billion.

Reuters reported on Monday that Restaurant Brands was nearing a deal to buy Popeyes, citing people familiar with the matter.