Carrols Restaurant Group Inc agreed to buy 278 Burger King restaurants in a cash-and-stock deal that will make the company the biggest Burger King franchisee in the world.
Currently the largest U.S. Burger King franchisee, Carrols will pay $15.8 million in cash and give a 28.9 percent stake in itself to Burger King, the two companies said in a statement.
Carrols, which has been operating Burger King franchises in the United States since 1976, will remodel about 450 restaurants over the next three-and-a-half years as part of the deal.
News of the deal sent Carrols shares up as much as 14 percent to $14.25 — their highest in more than four years.
The deal is conditioned on the spin-off of Carrols’ Fiesta restaurant business, and the company’s ability to refinance its credit facility, among other things.