Burger King (BKC) Acquired By 3G Capital for $24/Share

September 2, 2010 9:52 AM EDT
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Burger King Holdings Inc. (NYSE: BKC) has agreed to be acquired for $3.26 billion by the private-equity firm 3G Capital, or $4 billion with the assumption of the company’s debt.

According to the terms of the deal, shareholders of Burger King will receive $24 per share in cash, representing a 46 percent premium to the stock’s price before rumors of a sale surfaced in media reports on Wednesday.

“We are pleased that 3G Capital recognizes the value we have created in revitalizing the brand and enhancing operations over the past seven years,” said Burger King Chairman and Chief Executive Officer John W. Chidsey. “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.”

The company said that the deal is expected to close in the fourth quarter of this year.

“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,” Alex Behring, Managing Partner of 3G Capital, said.

Over the past decade, the company has been publicly owned, then went private and back to public. With an apparent move back to being privately owned, the fast food chain is being criticized for too many changes in ownership and not enough innovations within its restaurants.

The company was taken private in 2002 by a consortium of firms that included TPG, Bain Capital and Goldman Sachs Group Inc. (NYSE: GS). The consortium still maintains a 32 percent stake in Burger King.

The company has struggled in recent years to keep up with its biggest rival McDonald’s Corp. (NYSE: MCD) in innovations, while also dealing with its prime demographic, those aged 18 to 34 years being hit hard by the recession.

Shares of Burger King are up 23.33 percent to $23.36 in early market trade Thursday.

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Related Categories

Mergers and Acquisitions, Private Equity

Related Entities

Bain Capital, Burger King/3G


Evil Family
Algernon Dad Clauss on 2010-09-10 12:44:45
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The Mezvinsky family is Pond Scum.

Samuel Barnard Jr. on 2010-09-02 10:58:29
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After Mezvinsky loots Burger King will he go join Marc Rich in Switzerland?

Mezvinsky Swindles
Demarco Dontino on 2010-09-02 10:55:12
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Burger King will be defrauded by the
Mezvinsky family as they seek
to become wealthier than Buffet.

Edward Mezvinsky
Carol Blair Handel on 2010-09-02 10:53:05
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How can this Evil. Cruel, thug
buy Burger king via his Wall Street

Mezvinsky Slick Shtick
Larry Stotman on 2010-09-02 10:50:39
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Why should the son of convicted swindler Wheel & Deal with US
taxpayers money?

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