Acquisitions

Burger King, could be called also Second King, as it is McDonald’s biggest rival, is a global chain of hamburger fast food restaurants. The company began as a franchise restaurant chain in USA in 1953. It took 9 years till the company opened its first restaurant beyond the US border and today it has more than 1,200 restaurants in 76 countries. Most of these restaurants are possessed by private capacities, but 31 percent of Burger King’s outstanding shares are still possessed by consortium of private equity firms: TPG Capital, Bain Capital Partners and Goldman Sachs Funds. But all of them have agreed to tender their stock in the deal offered by 3GCapital. As Bur! ger King Holdings Inc. has announced, it is selling itself to private equity firm in a deal valued at $3.26 billion. Thursday’s offer soared Burger King’s shares to an 18-month high, what represented $24-per-share. During the financial crisis of 2007-2010 the company’s business has declined while McDonald’s has grown. As the economy has been bad for its most important group of customers – young men, Burger King struggled. But the offer from 3G Capital sent Burger King’s shares up more than 15 percent and the offer is a nearly 46 percent premium over the company’s stock price before rumors began circulating about the deal. According to the terms of deal with 3G, Burger King’s Chairman and CEO John Chidsey will become co-chairman of the board. Other co-chairman will be 3G Managing Partner Alex Behring who will together with Chidsey supervise this America’s second-largest hamburger chain.

related story (sgx18! 130): http://www.france24.com/en/20100902-burger-king-sold-private...

by Barbora Misakova for Cantell TV (http://cantell.tv)

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