Burger King announced that 3G Capital will acquire the stock of the Company for $24.00 per share, or $4.0 billion, including the assumption of the Company’s outstanding debt. TPG Capital, Goldman Sachs Capital Partners and Bain Capital Investors, which own approximately 31% of Burger Kings's outstanding shares have agreed to sell their holdings to 3G Capital.
3G is looking at Burger King as a turnaround opportunity. Burger King has been struggling lately. In a communication to investors it anticipated weak demand for its products due to high unemployment in the United States and economic weakness in Europe. It also said that cost of raw materials like wheat and beef could affect its results.
In fact Burger is going private just 4 years after returning to the capital markets. The company was taken private in 2002 by a trio of buyout firms - TPG Capital, Bain Capital and Goldman Sachs Capital Partners. In the last 4 years the company has underperformed its bigger rival, McDonald's. The share price (till before the announcement of the deal) is down 6% from its IPO price 4 years ago while McDonald's has more than doubled in that time.
For a time-line of Burger King's Corporate History visit the following link:
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