3G Capital Acquires Burger KingSeptember 3rd, 2010 - 7:14 pm ICT by GD
By Gina Gomez
Sep 3, (THAINDIAN NEWS) Yesterday was one of the most important days of the Burger King officials as the second largest fast food chain agreed to be acquired by 3G Capital, a New York investment firm backed by Brazilian investors. The deal is reportedly sealed for whooping $3.3billion and it is said to be the biggest restaurant acquisition on at least a decade. The new deal favors the Burger King’s plans for expansion in Asia and Latin America. However 3G Capital executives were not available for any comments.
A source close to Burger King told a reputed media source that under the terms of agreement Burger King stock holders will receive $24 for every share of the company. Previously, Burger King CEO John Chidsey said that the company is looking forward to be partners with 3G Capital and together with its “financial” and “consumer brands” experience will strengthen the company, its restaurants and “franchisees worldwide”. The CEO said that he will remain throughout the transaction period after the acquisition he will become the co-chairman of the board with the managing partner Alex Behring.
The statistics of Burger King shows that the company was taking a considerable amount of time to recover from the economic crunch and its competitor McDonald’s was capturing the market gradually. McDonald’s sales reached $22 billion with $4.3 billion dollar profit whereas Burger King could manage only $2.2 dollars in sales with $186 profit. John Chidsey in his interview said that the deal will bring 3G Capital’s experiences and contacts abroad which in turn will accelerate the horizon of the company. However, he did not comment anything about the costs, strategies of both the companies.
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