TH International Limited commonly known as Tims China announced a significant pre-merger financing round by a leading global asset manager ("Investor"). In addition, Tims China announced its receipt of several initial commitments to a larger private investment in public equities ("PIPE") financing to be closed concurrently with THIL's merger with Silver Crest Acquisition Corporation ("Silver Crest").
TH International Limited is the parent company of the exclusive master franchise of Tim Hortons Coffee of Canada for Restaurant Brands International Inc. (TSX: QSR) (NYSE: QSR) in China, including Hong Kong and Macau. TH International Limited was founded by Cartesian Capital Group and Tim Hortons Restaurants International, a subsidiary of Restaurant Brands International.
The Investor's financing package comprises both an immediate $50 million capital injection in the form of a note, convertible into shares of THIL at a 15% premium to the merger price for Tims China agreed in its business combination agreement with Silver Crest, and a further commitment to the PIPE.
Concurrently, Tims China announced commitments to the PIPE from several current investors, including affiliates of Sequoia Capital China and Eastern Bell Capital, which are subject to customary terms and final documentation.
Tims China holds the exclusive master franchise rights for Tim Hortons coffee shops in China. Formed in 2019 by private equity firm Cartesian Capital Group ("Cartesian"), Tims China brings an iconic coffee and bakeshop brand to one of the fastest-growing coffee markets in the world. At present, Tims China operates over 340 shops.
Peter Yu, Chairman of Tims China and Managing Partner of Cartesian, said, "It is a privilege to welcome a new investor as our partner in Tims China. Their deep engagement, understanding of the coffee opportunity in China, and extensive diligence resonate with our own data-driven philosophy. They are well-suited to support our growth toward our 5-year goal of delighting our guests at 2,700+ profitable cafés and beyond. We also welcome their notable commitment to our PIPE transaction, together with that of our current valued partners, including affiliates of Sequoia Capital China and Eastern Bell."
THIL and Silver Crest Acquisition Corporation ("Silver Crest"), a publicly traded special purpose acquisition company, have signed a definitive agreement related to a proposed business combination that would result in THIL becoming a public company. As a result of the business combination, THIL will continue as the parent/public company and will retain the name "TH International Limited". THIL intends to apply for listing of its ordinary shares on the NASDAQ Stock Market under the proposed symbol "THCH" to be effective at the consummation of the business combination.
Cartesian Capital Group, LLC is a leading global private equity firm with a demonstrated ability to grow companies internationally. With funds comprising more than $3 billion in capital commitments, Cartesian's team has helped to build 60 companies operating across 40 different countries.