3G Capital to acquire Burger King Holdings
September 2, 2010
by Keith Nunes
NEW YORK – 3G Capital, an investment firm, has entered into an agreement to acquire Burger King Holdings, Inc., Miami, for $24 per share and assumption of the company’s debt obligations. The value of the transaction is estimated to be $4 billion.
“We have great respect for the Burger King brand and the strong business that management, the employees and the franchisees have built,” said Alex Behring, managing partner of 3G Capital. “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. 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.”
John Chidsey, chairman and chief executive officer of Burger King Holdings, will remain through the transition period in his current capacity and subsequently assume a newly created position of co-chairman of the board. Upon closing of the transaction, Mr. Behring will be appointed co-chairman of the board of the company with Mr. Chidsey.
It is anticipated that 3G Capital will commence a tender offer for all of the outstanding shares of the Burger King Holdings no later than Sept. 17.
Burger King would be the first full acquisition for 3G, but would not be the company’s first investment in the food industry. The investment firm, through its 3G Capital Partners Ltd. hedge fund, holds a position in railroad company CSX Corp. as well as in bottler and distributor Coca-Cola Enterprises. 3G recently sold the shares it held in fast-food chains Wendy’s International Inc. and Jack In the Box Inc.