Sat, Feb. 14, 10:13 AM
- Craft soda is starting to become a trend to watch closely, according to industry insiders.
- Though still accounting for only ~1% of the total U.S. soda market, major retail chains have increasingly been willing to bet on local craft brands in store aisles.
- The craft craze is old news for the beer industry where coming-of-age millennials buy craft/local beers at a 50% higher rate than brand-loyal older generations. Fading stars such as Budweiser and Bud Light are testament to the impact of the millennial paradigm.
- The craft influence in coffee hasn't been lost on Starbucks which has strategically deployed trucks on college campuses in an effort to win over students.
- Despite the progressive reputation of Starbucks, analysts think new upstarts such as Craft (subscription) and Cups (app) have a shot of gaining influence with the Indie-minded millennial crowd on "customization" and pricing.
- What to watch: An increase in M&A activity in the beverage sector is expected as major companies strategically pick off more local craft brands to incubate.
- Craft beer watch: BUD, OTCPK:SBMRY, TAP, OTCQX:HEINY, SAM, BREW, STZ, OTC:BIBLF, OTCPK:BRBMF.
- Craft coffee watch: GMCR, SBUX, JVA, SJM, KRFT, DNKN, QSR, MCD.
- Craft soda watch: PEP, KO, MNST, COT, DPS, OTCQB:JSDA, REED, SODA, FIZZ.
Dec. 5, 2014, 7:49 AM
- Burger King Worldwide (NYSE:BKW) and Tim Hortons (NYSE:THI) provide an update on the upcoming merger between the fast-food restaurant chains.
- The companies say the transaction has cleared regulatory hurdles under the Hart-Scott-Rodino Act, the Competition Act in Canada, and the Canada Transportation Act.
- The deal is expected to be completed on December 12.
Dec. 4, 2014, 5:08 PM
- Burger King (NYSE:BKW) +3.7% AH after Canada's government approves its purchase of Tim Hortons.
- Among conditions BKW agreed to in exchange for approval: locating its corporate HQ in suburban Toronto, maintaining employment levels at Tim Hortons' Canadian outlets, and expanding the coffee chain's global presence at a "significantly greater" pace than previously envisaged.
- Government officials praise BKW's decision to set up headquarters in Canada as proof that its drive to lower corporate tax rates is attracting investment.
Sep. 23, 2014, 3:45 AM
- Under Treasury Secretary Jack Lew’s crackdown on inversions, the Treasury Department announced new tax rules late yesterday to deter U.S. companies from moving their domicile to countries with lower tax rates.
- The tax changes make it harder for companies to complete overseas mergers, and should they choose to invert, companies will face a hard time using the cash accumulated abroad.
- The new rules are effective immediately and apply to all deals that have not closed by yesterday.
- Related M&A: MDT, COV, SLXP, MYL, CQB, OTC:FYFFF,BKW, THI
Sep. 12, 2014, 4:37 AM
- Burger King (NYSE:BKW) will meet with leaders next week to discuss a $7.25B loan package, including a $6.75B seven-year term loan and a $500M five-year revolver, to back its $11.5B purchase of Tim Hortons (NYSE:THI).
- The loan, being arranged by JPMorgan Chase, would be the single biggest term loan for an acquisition by a speculative-grade borrower since 2007.
- Berkshire Hathaway (BRK.A, BRK.B) is also providing $3B of preferred equity financing for the transaction.
Aug. 26, 2014, 7:46 AM
- Burger King Worldwide (NYSE:BKW) and Tim Hortons (NYSE:THI) announce plans to merge to create a restaurant giant with over $23B in annual sales.
- Under the terms of the deal, Tim Hortons shareholders will receive C$65.50 per share in cash and 0.8025 shares in the new company per THI share.
- The combined company will run Burger King and Tim Hortons as separate brands.
- 3G Capital will own close to 51% of the new company.
- BKW -1.0% premarket, THI +9.1% to $81.50.
Aug. 26, 2014, 2:00 AM
- In a surprise twist which lands Warren Buffett in the middle of the Burger King (NYSE:BKW)-Tim Hortons (NYSE:THI) deal, Berkshire Hathaway (BRK.A, BRK.B) is now expected to provide about 25% of the financing for the merger, WSJ reports.
- The exact structure of Buffett's participation remains unclear, but sources say he will invest in the form of preferred shares.
- Due to deal being structured as a tax-inversion, the new move also shoves the billionaire into a heated debate over U.S. taxes.
- THI +1.7% AH
Aug. 25, 2014, 8:03 AM
- A strategic reason for Burger King Worldwide (NYSE:BKW) to snap up Tim Hortons (NYSE:THI) is the potential for the company to use its deep global development experience to help the coffee chain grow in new global markets
- That plan could see Tim Hortons compete against Starbucks (NASDAQ:SBUX) in more regions, including a deeper foray into the U.S.
- Shares of Tim Hortons (THI) are flying in premarket trading, up 17.6%.
Aug. 24, 2014, 9:43 PM
- Burger King Wordwide (NYSE:BKW) is in talks to buy Tim Hortons (NYSE:THI) in a deal that would create the 3rd largest quick-service restaurant company in the world, according to the WSJ.
- Sources indicate the deal is being structured as a tax inversion transaction in which the new company would be headquartered in Canada.
- Tim Hortons and Burger King are expected to remain distinct brands if the merger is finalized.
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