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Tim Hortons China targets 2,500 new stores in five years after $1.7bn merger

Silver Crest Acquisition Corp will merge with Tim Hortons China, paving the way for an IPO valuing the company at around $1.7bn

Tim Hortons China has set the ambitious goal of opening 2,500 stores within five years following a merger with Silver Crest Acquisition Corp.



Tim Hortons China is set for a Nasdaq listing following a planned merger with Silver Crest Acquisition Corp. Documents filed by the latter company at the US Securities and Exchange Commission (SEC) indicate the new entity could be valued at $1.7bn.
 
According to an investor presentation attached to the SEC filing, the terms of the deal will see Tim Hortons China target 2,500 new stores in five years. “We will have nearly 400 units by the end of this year, opening one every 36 hours,” said Tim Hortons China CEO Yongchen Lu, according to the SEC investor presentation transcript.
 
The target is even more ambitious than Tim Horton China’s 2018 goal to open 1,500 stores in China within ten years. Since opening its first store in Shanghai in 2019, the Canadian coffee chain has expanded to around 150 outlets.

In March 2021, Tim Hortons China completed a fundraising round from investors Sequoia Capital China, Tencent Holdings and Eastern Bell Capital, to open 200 stores in China.
 
Nevertheless, China’s booming coffee shop market remains an opportune investment for international hospitality brands seeking to grow their global footprint. World Coffee Portal data shows that despite the pandemic, China’s branded coffee shop market grew 2.9% to exceed 21,400 outlets in 2020.
 
Tim Hortons China was formed in 2018 as a joint venture between parent company Restaurant Brands International Inc., and private equity firm Cartesian Capital Group. The deal with Silver Corp is expected to complete in the fourth quarter of 2021.

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