Tim Hortons China is planning to go public in a deal that could rapidly speed up its growth in the coffee drinking market in China, with plans to open more than 2,500 new locations in 5 years.
Restaurant Brands International has recently confirmed that its joint venture with private equity firm Cartesian Capital Group, called Tim Hortons China, has entered into a business combination agreement with Silver Crest Acquisition Corp.
Restaurant Brands said the deal with Silver Crest, a special purpose acquisition company, would see TH International traded on the Nasdaq stock exchange.
The US Securities and Exchange Commission pegged the implied value of Tim Hortons China at US$1.69 billion, with the expected value of the new combined entity when it starts trading at above US$2 billion.
Under the agreement, Tim Hortons will bring its store count in China to more than 2,750 by 2026. This is an extremely ambitious plan considering that in 2018, Restaurant Brands announced that its partnership with Cartesian Capital would see more than 1,500 Tim Hortons restaurants in China in 10 years.
The coffee and doughnut chain reported strong same-store sales growth of 42.5% in the 1st quarter of 2021.