The parent company of Burger King and Tim Hortons fast-food chains, Restaurant Brands International, said Tuesday it will acquire Popeyes Louisiana Kitchen, the company famous for its Cajun cuisine, for $1.8 billion.

Restaurant Brands International will finance the transaction with cash on hand and a financing commitment from J.P. Morgan and Wells Fargo. Popeyes' shareholders will receive $79 in cash per share at closing, the company said in a statement.

Popeyes, which is among the world's largest quick service restaurant chicken concepts, was founded in New Orleans in 1972 and has since expanded to more than 2,000 restaurants of which 1,600 are in the U.S. One of its many fans include pop singer Beyoncé. Currently, its corporate headquarters is in Atlanta.

"RBI has observed our success and seen the opportunity for exceptional future unit growth in the U.S. and around the world. The result is a transaction that delivers immediate and certain value to the Popeyes shareholders," Popeyes CEO Cheryl Bachelder said in the press release.

Restaurant Brands International is a Canadian multinational that was formed when 3G Capital-backed Burger King acquired the Canadian donut shop Tim Hortons in 2014. In the recent few years, it has come up with various food mashups such as onion ring-shaped chicken fries, Cheetos Chicken Fries, burgers with red and black buns and the Whopperito.

"Popeyes is a powerful brand with a rich Louisiana heritage that resonates with guests around the world. With this transaction, RBI is adding a brand that has a distinctive position within a compelling segment and strong U.S. and international prospects for growth," Restaurant Brands International CEO Daniel Schwartz said.

Analysts believe that this deal will provide a boost to the company. “Restaurant Brands may be able to cut selling, general and administrative expenses in half in the next two years, and its private equity partners can boost international expansion as spicy flavors, chicken and rice tend to travel well,” said Michael Halen, an analyst at Bloomberg Intelligence.

With the advent of newer entrants like Shake Shack and Five Guys, the fast food business has become more challenging in the U.S in the recent few years. Online ordering outlets too have given a tough time to market share of the traditional food joints. This deal could help boost Restaurant Brands International's sale as it will add a chicken-based chain to its already existing food items.

It was not clear after the announcement whether Restaurant Brands plans to bring forth any change in the operations with regard to this deal. However, it said in the statement that the Popeyes brand will "continue to be managed independently in the U.S., while benefitting from the global scale and resources of RBI."

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