Restaurant Brands International Inc (QSR.TO), owner of the Burger King and Tim Hortons fast-food chains, said on Tuesday it would acquire Popeyes Louisiana Kitchen (PLKI.O) for US$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.

“Compared to what [Restaurant Brands] paid for Tim Hortons, it seems like a bargain,” said Kash Pashootan, senior vice-president and portfolio manager at First Avenue Advisory, Raymond James, in an interview with BNN. “Of course, Popeyes doesn’t have the same brand power as Tim Hortons. But I think this is a great fit.” 

Popeyes shareholders will get US$79.00 for each share they hold, a 19.5 per cent premium to the stock's Friday close.

"Popeyes is a powerful brand with a rich Louisiana heritage that resonates with guests around the world. With this transaction, RBI is adding a brand that has a distinctive position within a compelling segment and strong U.S. and international prospects for growth," said Restaurant Brands CEO Daniel Schwartz in a press release.

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.

“They’re jumping on the fried chicken bandwagon,” said Scott Shellady, SVP at TJM Investments, in an interview with BNN. “We’re going to be eating more fried chicken in the States than any other year. It’s going to be a record again this year. What a great idea [for Restaurant Brands] – the synergies that they’ve gotten with Burger King and Tim Hortons already. This looks to be a good move.”

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.

Restaurant Brands said on Tuesday it would finance the deal with cash on hand and a financing commitment from J.P. Morgan and Wells Fargo.

The company was advised by Paul, Weiss, Rifkind, Wharton and Garrison LLP. Popeyes received financial advice from UBS and Genesis Capital LLC and legal counsel from King & Spalding LLP.

Owners of Restaurant Brands International

--With files from BNN  

Quick facts: Restaurant Brands International and Popeyes 

Popeyes:

• Founded: New Orleans, 1972
• Operations: More than 2,600 restaurants in the U.S., Canada and two dozen other countries
• Interesting Fact: When the first restaurant opened, it was called Chicken on the Run. After several months, it was renamed Popeyes after the detective in the 1971 film "The French Connection," played by Gene Hackman.

Restaurant Brands International:

• Founded: Oakville, Ont., 2014, with the merger of Tim Hortons and Burger King (Tim Hortons founded in 1964, Burger King founded in 1954)
• Operations: More than 20,000 restaurants, including 15,700 Burger Kings and 4,600 Tim Hortons cafes, in more than 100 countries and U.S. territories
• Interesting Fact: When NHL star Tim Horton opened the first Tim Hortons in Hamilton, coffee and donuts cost 10 cents each.

Sources: Restaurant Brands International, Popeyes Louisiana Kitchen via The Canadian Press