hospitalitystyle.com

(September 2010) posted on Fri Sep 03, 2010 EDT

Restaurant chain’s new owner expected to ratchet up overseas growth

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The Burger King fast-food chain is being acquired for $4 billion by 3G Capital, a private equity firm. Under the terms of the agreement, which has been unanimously approved by the company's board, stockholders will receive $24 per share for all outstanding shares of Burger King common stock.

“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,” said Alex Behring, 3G's managing partner. “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.”

In an interview with The Wall Street Journal, Burger King ceo John Chidsey said “one of the key things that attracted [3G] to the brand is the growth we've had in Latin America. Brazil, in particular, has been a big success story for Burger King. They can help us expedite growth in Latin America, Europe and Asia, as well.”

Under the terms of the agreement, 3G Capital is expected to commence a tender offer for all of Burger King's outstanding shares no later than Sept. 17. Affiliates of TPG Capital LP, Goldman Sachs Capital Partners and Bain Capital Investors, which own approximately 31 percent of the company's outstanding shares, have entered into agreements to tender their holdings. The deal is expected to close later this year.

Burger King operates more than 12,150 restaurants in the U.S. and in 76 countries and U.S. territories worldwide. About 90 percent of the company's restaurants are owned and operated by independent franchisees.