Tim Hortons’ China arm to go public through SPAC merger, plans large scale expansion

Tim Hortons in China is planning to go public in a deal that could significantly increase the number of the coffee and doughnut chain’s locations in the country to more than 2,750 restaurants in five years.

Restaurant Brands International says TH International Ltd. — its joint venture with private equity firm Cartesian Capital Group, which launched its first restaurant in China in 2019 — has entered into a business combination agreement with Silver Crest Acquisition Corp.

The company says the deal with Silver Crest, a special purpose acquisition company, would see TH International traded on the Nasdaq stock exchange.

Documents filed with the U.S. Securities and Exchange Commission peg the implied value of Tim Hortons in China at US$1.69 billion, with the expected value of the new combined entity when it starts trading at above US$2 billion.

Restaurant Brands says the merger, which still requires regulatory approval, will see Tim Hortons benefit from China’s rapidly emerging coffee market.

Tim Hortons currently has 199 locations in China with plans to nearly double the chain’s footprint by the end of the year.

Prior to the merger, Restaurant Brands had said its partnership with Cartesian Capital would see more than 1,500 Tim Hortons restaurants in China in 10 years.