3G Capital to acquire Burger King
Fast-food chain Burger King is to be sold to investment firm 3G Capital for $US3.26 billion in a deal analysts said would give the restaurant breathing room to fix its business.
At $24 per share, the deal offers a 46 per cent price premium to the company's unaffected share price before market rumours began on Wednesday.
Including the debt that New-York based 3G will assume, the agreement is valued at about $4 billion. The transaction is expected to be completed in the last quarter of 2010.
The deal was unanimously approved by Burger King's board of directors.
Burger King chairman and CEO John W. Chidsey said, "We look forward to partnering with 3G Capital, whose proven track record as an investor, together with its financial and consumer brands experience, will serve to further strengthen the company, our restaurants and franchisees worldwide."
Alex Behring, managing partner of 3G Capital, 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."
In Australia, the Burger King franchise is known as Hungry Jack's, a wholly owned subsidiary of Competitive Foods Australia.
Source: Reuters