Burger King to be bought by 3G Capital for $4 billion

burgerking.top.pngClick the chart to see more about Burger King. By Julianne Pepitone, staff reporter


NEW YORK (CNNMoney.com) -- Burger King said Thursday that it has agreed to be acquired by investment firm 3G Capital in a deal valued at $4 billion.

New York-based 3G Capital will buy the fast food chain for $24 a share. That marks a 46% premium over Burger King's closing price of $16.45 on Tuesday, the day before news reports said the company was up for sale.

Burger King (BKC) shares rose almost 15% Wednesday after a Wall Street Journal report said 3i Group, based in London, was preparing to buy Burger King. But the Journal retracted that statement later in the day after 3i refuted it.

After 3G Capital confirmed its purchase, the fast food chain's shares were up another 24% to trade at $23.40 Thursday.

Burger King's board of directors has already approved the deal, which is slated to close during the fourth quarter. Burger King's chairman and chief executive, John Chidsey, will remain CEO during the transition and then take on the newly created role of co-chairman.

TPG Capital LP, Goldman Sachs Capital Partners and Bain Capital Investors collectively own about 31% of Burger King's shares. Those firms took Burger King private in 2002, but it returned to the public market in 2006.

Burger King has struggled more than its rival, McDonald's (MCD, Fortune 500), amid the recession. Last week it forecast weak demand for its new fiscal year, citing high U.S. unemployment rates and government austerity programs sweeping through Europe.

The restaurant chain operates more than 12,150 restaurants in all 50 states and in 76 countries. To top of page

Just the hot list include
Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 26,453.09 -8.99 -0.03%
Nasdaq 8,090.16 -28.52 -0.35%
S&P 500 2,925.09 -1.08 -0.04%
Treasuries 2.50 -0.03 -1.34%
Data as of 10:42am ET
Company Price Change % Change
Ford Motor Co 10.38 0.98 10.45%
Intel Corp 52.07 -5.54 -9.62%
Advanced Micro Devic... 27.34 -0.32 -1.16%
Micron Technology In... 41.61 -1.14 -2.67%
Bank of America Corp... 30.19 0.11 0.37%
Data as of 10:27am ET
Sponsors

Sections

Bankrupt toy retailer tells bankruptcy court it is looking at possibly reviving the Toys 'R' Us and Babies 'R' Us brands. More

Land O'Lakes CEO Beth Ford charts her career path, from her first job to becoming the first openly gay CEO at a Fortune 500 company in an interview with CNN's Boss Files. More

Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.