Burger King Agrees to Be Bought by 3G Capital for $24 a Share

burger King sold for $4 billionThe rumors have been confirmed: 3G Capital will acquire Burger King for $24 per share, or $4 billion, including the assumption of the company's outstanding debt. Burger King's board has unanimously approved the deal.

Shares of fast food chain Burger King (BKC) opened 23.7% higher at $23.34 Thursday after closing at $18.86, or 14.65% higher, Wednesday. The stock originally got a boost from rumors of a possible deal to sell the company.

The $24 a share price represents a 46% premium to BK's closing price on Aug. 31 of $16.45, just before the rumors began. The transaction is expected to close in the fourth quarter of this calendar year. Burger King can still solicit superior proposals until Oct. 12, 2010.

Current Chairman and CEO John Chidsey will retain his current position through the transition period, and will subsequently assume the newly created title of Chairman of the Board. Upon the closing of the transaction, Alex Behring, a managing partner at 3G Capital, will also be appointed Co-Chairman of the Board.

Affiliates of TPG Capital LP, Goldman Sachs Capital Partners and Bain Capital Investors, which own approximately 31% of BK, have agreed to tender their shares into the offer.

Burger King has lagged behind larger rival McDonald's (MCD) and other fast food chains during the recession. Its sales have slowed for two straight years, hit by the high level of unemployment and the fragile economy. Last week, the company forecast weak demand during its new fiscal year because of the continued economic challenges.

Miami-based Burger King operates more than 12,150 restaurants in all 50 states and in 75 countries and U.S. territories worldwide.

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Tim

I don't eat fast food,Maybe one day they will all close up and find better heathy foods to eat instead of lard and fat making all people fat and giving them diabetes.

September 05 2010 at 9:02 PM Report abuse +1 rate up rate down Reply
christopher

If you think they're food was nasty before, wait till they start using cats instead of beef.

September 03 2010 at 4:57 AM Report abuse rate up rate down Reply
P.J.

No inside trades here folks!! Alot of scumbags made a quick score on this deal!!Let's see what this stock is worth next session after everyone bolts with thier booty !!! What a scam if you got the information!!!

September 03 2010 at 2:00 AM Report abuse +1 rate up rate down Reply
jigokurei

Sadly, when fast food franchises go public, it often end up chasing the $$$ and in direct proportion loses quality and value over time. Sadly, I feel that McDs, Burger King, Wendy's, A&W, Sonic, Pizza Hut, and countless others have all gone to the end of virtually no return. Like Warrior said, regarding Burger Kind's decision to change their franchise location decorations and style, "They have forced their cheezy "industrial" remodeling style for their restaurants down the throats of their franchise owners." I've said nearly the same thing about A&W, and a couple other that, no matter how nice you make the outside or inside look, with flashy new designs and decorations, it still does not make the food taste any better nor go down any easier. Only a few fast food restaurants still attempt use real quality ingredients as well as to focus on their customers ultimate satisfaction, and namely one comes to mind, In-And-Out. They're still privately owned and operated, and as long as they don't go chasing after the $$$ they'll do just fine. Sadly, corporation have gotten greedy by chasing wealth, by expanding into foreign markets, and really nothing to do with offering a quality food product to those other nations. They're just trying to sell a name. Often then end up losing their foothold on the market and ultimately cannot compete well enough to stay a viable competitor in the market and losing share by be bought out by foreign investors. If you are not aware of whom owns your favorite business, I suggest you research a few of them online. That is, see who it is that owns the lion's share of that business. You may be surprised to learn that it's more than likely a foreign investor or foreign group of investors. And sadly, this is how our country is losing it's businesses to overseas investors. If you feel that it is important to drive these companies out of business here in the U.S., then I suggest you stop supporting them by patronizing their businesses. That means, stop buying from them altogether. But if you don't really care, no worries then, just enjoy.

September 03 2010 at 1:31 AM Report abuse +2 rate up rate down Reply
1 reply to jigokurei's comment
racings12a

When I lived in California I used to love In-and-Out burgers. They are by far the best burger joint out there but sadly they are only in California, Nevada and Oregon. They want to remain small because it's easier to control. I am now back here in Georgia and have found a burger joint almost as good (Five Guys burgers) but their prices are more than double In-and-Out.

September 03 2010 at 7:55 AM Report abuse rate up rate down Reply
BattleKat65

The food has gone downhill, the prices have gone sky high, their customer service is a joke , typical of Americana at its best these days.

September 03 2010 at 1:15 AM Report abuse +1 rate up rate down Reply
Mark

I wonder if that's why so many BKs have been closing around here (Massachusetts East Coast).............

September 03 2010 at 12:19 AM Report abuse +2 rate up rate down Reply
armandohunter

Another foreign company buying an American made product. Wake up America soon nothing will be left. Everything is being contracted out. With all the money we have in America how is it that foreign companies are coming in and buying everything. We import everything and the products sure as heck don't last. As citizens everybody just sits back and accepts it. Can this country go into China and buy any business. This country is the best so they cant beat us, they might as well buy us out. Cant wait till they contract out the government.

September 03 2010 at 12:18 AM Report abuse +5 rate up rate down Reply
muggerfuggerdj1

bk sales lack cause there food is not as good as it used to be and shrunk in size and there prices contune to soar and americans have had enough we want good quality food at a decent price

September 02 2010 at 11:57 PM Report abuse +7 rate up rate down Reply
1 reply to muggerfuggerdj1's comment
magyymae1

Their, not there!

September 03 2010 at 12:17 AM Report abuse rate up rate down Reply
Richard

All of you dimwits, if you knew what goes into the sh*t they use for hamburger meat you wouldn't go near the place, and that goes for all fast food restaurants. or maybe you would.

September 02 2010 at 11:54 PM Report abuse +4 rate up rate down Reply
budwsr25

Clean up the restaurants and put in better management you might get the people back. All 4 resraurants in my area are dirty. One of them had maggots in the drink station. I HAVE PICTURES TO PROVE IT.

September 02 2010 at 11:52 PM Report abuse +4 rate up rate down Reply
1 reply to budwsr25's comment
srlegalsec

let's see those pix of maggots?

September 03 2010 at 2:45 AM Report abuse rate up rate down Reply