Burger King agrees to $3.26B buyout by 3G Capital

The nation's second-largest fast food chain hopes to rally after hitting a slump


Associated Press
September 2, 2010 5:44PM (UTC)

Burger King Holdings Inc. is selling itself to private equity firm 3G Capital in a deal valued at $3.26 billion.

Thursday's $24-per-share offer comes after a day of speculation about the deal sent shares up more than 15 percent. The stock continued to make big gains Thursday before the stock market opened.

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Burger King is the nation's second-largest hamburger chain behind its far-larger rival McDonald's Corp. But with 12,100 locations, it's struggled because the economy has been bad for its most important group of customers: young men.

Under the terms of the deal with 3G, Burger King's Chairman and CEO John Chidsey will become co-chairman of the board. 3G Managing Partner Alex Behring will be the other co-chairman.

Burger King became publicly traded in 2006, four years after a consortium of private equity firms acquired the company.

The group -- TPG Capital, Bain Capital Partners and Goldman Sachs Funds -- still own 31 percent of Burger King's outstanding shares and have agreed to tender their stock in the deal.


Associated Press

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