(Yicai Global) Feb. 9 -- TH International, the exclusive operator of Canadian coffee chain Tim Hortons in China, has merged with Popeyes China to operate the Louisiana fried chicken brand in China's mainland and Macau.

The acquisition is expected to generate significant cash flows for Tims China and strengthen the company's balance sheet, the coffee chain operator said in a statement yesterday. 

Like Tim Hortons, Popeyes is a brand owned by Restaurant Brands International, a Toronto-headquartered restaurant group, while New York-based Cartesian Capital Group is the largest shareholder of Tims China and the franchisee of Popeyes in the region. 

The Starbucks rival is taking over the fast food brand whose aggressive market entry backfired. Popeyes operates two mainland outlets in Shanghai after closing four others. When the brand opened its first eatery in China in 2020, some consumers arrived at 11 a.m. and had to wait until 5 p.m. Some netizens even claimed that they had waited up to eight hours.

The business integration will benefit both parties, Tims China Chief Executive Lu Yongchen said, adding that the two brands have complementary products and good growth potential. Tims China currently has more than 600 outlets and the number will reach 1,000, Chairman Peter Yu said earlier.

Editors: Shi Yi, Emmi Laine, Xiao Yi