Burger King (BKC) to Be Acquired by 3G Capital for $4 Billion

September 2, 2010, 7:08 AM

Burger King Holdings Inc.  (NYSE: BKC) on Thursday has agreed to be acquired by private equity firm 3G Capital in a deal valued at $4 billion including debt.

A day after speculation of the deal had sent shares up more than 15 percent, 3G makes an offer for Burger King for $24 per share, the deal had increased stock gains before the market even opened on Thursday.  Thats a 46 percent premium since reports of a deal were even announced which closed at $16.45 on August 31. Under the agreement Burger King has until October 12 to still solicit higher bids.

Burger King’s 12,100 locations have struggled due to the economy affecting its most profitable customers which are young males. The company is the second-largest hamburger chain in the U.S,  far behind much larger rival McDonald’s Corp.But with 12,100 locations, it’s struggled because the economy has been bad for its most important group of customers: young men.

In the agreement, Burger King’s Chairman and CEO John Chidsey will become Co-Chairman of the board and 3G Managing Partner Alex Behring will be the other co-chairman.

Four years after a consortium of private equity firms acquired the company, Burger King became a publicly traded company in 2006.

Related Articles

• Burger King (BKC) in Possible Discussion About a Buyout
• Estee Lauder (EL) Shares Drop, 3Q Forecast Misses Predictions
• Merck (MRK) 4Q Profit Rises, Beats Estimates

Tags: 3G Capital, burger king holdings inc, NYSE