Burger King Sold for $4 Billion

Burger King sold! Yes. New York based 3G Capital, a private equity firm is buying fast food giant Burger King. The deal will be worth $3.26 billion, but Burger King's debt will also be taken over by 3G Capital, making the actual value of the deal around $4 bn. This company has the backing of Brazilian billionaire Jorge Paulo Lemann and his business partners Marcel Telles and Carlos Alberto Sicupira. As per the deal, managing partner of 3G Capital, Alex Behring will become co-chairman of the new board, while John Chidsey, chairman and chief executive of Burger King will be the other co-chairman.

Burger King, established in 1954, is the second largest hamburger brand after McDonald's and is based in Miami. Having more than 12,000 outlets around the world, its stocks shot up nearly 20% on Wednesday/Thursday. It was earlier bought in 2002 by a group of private equity firms - TPG Capital, Bain Capital and Goldman Sachs Funds. They put out a statement which said, "The deal represented a 46% premium to Burger King's share price before news of a possible takeover surfaced." Alex Behring wrote to franchisees, "We share a common goal to improve the Burger King brand experience for guests at both company-owned and franchisee restaurants, while running a sustainable business on an ongoing basis."

As of now there has been no word from 3G Capital as to new strategy of job cuts, but there is a strong feeling that they will be keen to expand operations in Asia and South America, places where they have strong business links. Though experts feel, from them to do well and catch up with industry leader McDonald's, upgrading franchisees, overhauling the menu, etc., would be necessary steps that need to be taken. But no denying one thing, millions relate to and love the unique taste of the burgers BK serves its customers worldwide.