September 3, 2010

Private equity firm to buy Burger King

Private equity group 3G Capital will buy Burger King for US$4 billion, the hamburger chain said on Thursday (Sep 2).

3G Capital agreed to acquire all Burger King's stocks for US$24 per share in cash, representing a 46% premium over the share price before market rumours surfaced. The price includes the assumption of Burger King's outstanding debt.

Burger King's chairman and CEO John Chidsey will become co-chairman of the board upon completion of the transaction, and Alex Behring, managing partner of 3G Capital, will be appointed co-chairman alongside Chidsey.

Burger King's board unanimously approved the deal, which is expected to close in the fourth quarter.

Burger King last week reported a 2.3% decline in sales its 2010 fiscal year, compared to a 1.2% increase during the same period last year.

Burger King operates more than 12,000 restaurants worldwide. About 90% are owned by independent franchisees.