As had been widely speculated and reported upon over the weekend, Restaurant Brands International Inc. (NYSE:QSR ) will acquire Popeyes Louisiana Kitchen Inc. (NASDAQ:PLKI ) for $1.8 billion in cash, the two companies announced Tuesday morning [Feb 21, 2017 | 8:30am].

Written by StockNews.com

The $79.00 per-share buyout price represents a 27% premium over Popeyes’ 30-trading day volume weighted average price as of Feb. 10, which is the final day before news began leaking about the potential transaction.

Restaurant Brands noted that Popeyes will maintain a separate presence within its growing portfolio:

Following the closing of the transaction, Popeyes will continue to be managed independently in the U.S., while benefitting from the global scale and resources of RBI. Building on the momentum of recent years, RBI plans to continue developing the brand at an increasing pace in the U.S. and international markets in the years to come.

QSR said it would finance the transaction using cash on hand, as well as via financing providing by banking giants JPMorgan Chase & Co. (NYSE:JPM) and Wells Fargo & Co (NYSE:WFC).

The deal, which is subject to customary shareholder and regulatory approval, is expected to close by early April 2017.

Restaurant Brands International Inc. shares rose $1.1 (+2.04%) in premarket trading Tuesday. Year-to-date, QSR has gained 15.61%, versus a 5.35% rise in the benchmark S&P 500 index during the same period.

QSR currently has a StockNews.com POWR Rating of A (Strong Buy), and is ranked #4 of 54 stocks in the Restaurants category [while] PLKI currently has a StockNews.com POWR Rating of B (Buy), and is ranked #25...