Private equity firms TPG, Bain Capital and Goldman Sachs Capital Partners have sold their 31 per cent stake in Burger King as the global hamburger chain is picked up by investment firm 3G Capital.
3G is to pay $3.26bn for the company, which rises to $4bn with the assumption of the company’s debt. The $24 per share cash offer represents a 46 per cent premium to the company’s share price before takeover rumours started to circulate, with the transaction expected to close in the fourth quarter of 2010.
3G managing partner Alex Behring said, “The iconic Burger King brand, its solid franchisee network and great product offerings make this a perfect fit for 3G Capital, which has a strong track record of long-term investments in global consumer brands and retail companies. We are excited to work together with the company’s employees and franchisees to continue to invest in the brand for the benefit of all its guests, employees and franchisees.”
Burger King was acquired in 2002 by a consortium of investors led by TPG, Bain Capital and Goldman Sachs Capital Partners for $1.5bn from Diageo after a summer of fraught negotiations. The chain went public in New York in 2006, but the consortium held on to a 31 per cent stake after the flotation.
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