Burger King sold for 3.26 Billion to 3G Capital

The announcement that Burger King had been sold to the relatively unknown company 3G Capital, came on 2^nd September 2010. Apparently Burger King Holdings Inc, as it is known nowadays, has been sold for $3.26 billion. 3G capital has acquired Burger king Holdings Inc, for $24 per share, the total deal is worth $ 4 billion, considering the inclusion of the company’s debt.

As a result of this news, the shares of Burger King soared to $23.48 from $18.86, an increment of 24.5%, during trading on Thursday.

Investment companies such as TPG Capital, Bain Capital, and Goldman Sachs Capital Partners still own almost 31% outstanding shares of Burger King Holdings Inc. which are expected to be acquired by 3G capital till 17^th September.

“The Burger King brand is one of the most recognizable and respected brand names in the world,” said John Chidsey, chief executive of Burger King. “We look forward to partnering with 3G Capital.” Although Chidsey will act as chief executive during the transition period, he will later take on the position of co-Chairman of the Board, the other co-chairman being Alex Behring, who is the managing partner of 3G Capital.

John Chidsey is optimistic about the fact that 3G will bring in its experience and contacts in to play and help increase sales, which have been declining in the past few years. He did not comment on new strategies of the company or respond to questions regarding cost cuts and possible layoffs, as a result of the deal.